NEW YORK–(BUSINESS WIRE)–$CAN #CAN—Scott+Scott Attorneys at Law LLP (“Scott+Scott”), a national securities and consumer rights litigation firm, is notifying investors that a class action lawsuit has been filed against Canaan, Inc. (“Canaan” or the “Company”) (NASDAQ: CAN), and certain other defendants, related to alleged violations of the Securities Act of 1933. If you purchased Canaan American Depository Shares (“ADS”) issued in connection with the Company’s November 20, 2019 initial public offering (“IPO”), and have suffered a significant loss, actual or retained, you are encouraged to contact Jonathan Zimmerman for additional information at (888) 398-9312 or [email protected].
The lawsuit, which has been filed in the United States District Court for the District of Oregon, alleges that Canaan, and the other named defendants, made false and/or misleading statements and/or failed to disclose that: (1) a purported “strategic cooperation” agreement with Hangzhou Grandshores Weicheng Technology Co., Ltd was actually a transaction with a related party; (2) the Company’s financial health was worse than what was actually reported; (3) the Company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses; and (4) several of the Company’s largest Chinese clients in prior years were clients who were not in the Bitcoin mining industry and, thus, would likely not be repeat customers.
According to the lawsuit, when the true details reached the market, Canaan’s ADSs fell over 6.8%, closing at $5.32 per ADS on February 20, 2020.
What You Can Do
If you purchased Canaan ADSs pursuant and/or traceable to Canaan’s IPO, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or [email protected]. The lead plaintiff deadline is May 4, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.