SAN FRANCISCO, CA / ACCESSWIRE / January 7, 2021 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases, including important upcoming deadlines, can be found at the links provided.
KNDI Investors Click Here.
NAK Investors Click Here.
YY Investors Click Here.
Kandi Technologies Group, Inc. (NASDAQ:KNDI) Securities Fraud Class Action:
Class Period: Mar. 15, 2019 - Nov. 27, 2020
Lead Plaintiff Deadline: Feb. 9, 2021
Visit: www.hbsslaw.com/investor-fraud/KNDI
Contact An Attorney Now: [email protected]
844-916-0895
The complaint centers on whether Kandi manipulated its financial statements, including overstating revenues.
More specifically, according to the complaint (1) Kandi artificially inflated reported revenues through undisclosed related party transactions, and (2) most of Kandi's sales during the past year were to undisclosed related parties, indicating the lack of arms-length transactions.
But investors began to learn the truth, according to the complaint, on Nov. 30, 2020, when Hindenburg Research published a scathing lengthy forensic report based on on-the-ground inspections at Kandi's factories and customer locations in China, interviews with over a dozen former employees, and review of numerous litigation documents and internal public records.
According to Hindenburg, Kandi engaged in a "brazen scheme" to "falsify revenue using fake sales to undisclosed affiliates." Hindenburg reported (1) it unmasked Kandi's top customers and found that almost 64% of Kandi's last twelve months sales have been to undisclosed related parties, and (2) the company's largest customer, representing about 55% of Kandi's last twelve months sales, shares a phone number with a Kandi subsidiary and a Kandi executive. Hindenburg further concludes Kandi's financials corroborate its concerns, noting that "[t]he company has consistently booked revenue it cannot collect, a classic hallmark of fake revenue."
This news drove the price of Kandi shares crashing lower.
"We're focused on, among other things, investor losses and proving Kandi engaged in revenue recognition fraud," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Kandi investor, click here to discuss your legal rights with Hagens Berman.
Northern Dynasty Minerals Ltd. (NYSE:NAK) Securities Fraud Class Action:
Class Period: Dec. 21, 2017 - Nov. 25, 2020
Lead Plaintiff Deadline: Feb. 2, 2021
Visit: www.hbsslaw.com/investor-fraud/NAK
Contact An Attorney Now: [email protected]
844-916-0895
The lawsuit alleges Northern Dynasty and senior executives misled investors about the viability of the company's proposed Pebble Project, a large mining project in Alaska.
In past quarters, Northern Dynasty repeatedly touted its progress in obtaining the necessary permitting for the Pebble Project. The company and senior management also repeatedly assured investors that the Pebble Project design included a substantially reduced development footprint and meaningful new environmental safeguards and, as a result, would likely receive necessary permits from federal, state and local regulatory agencies.
Investors began to learn the truth through a series of partial disclosures beginning on Aug. 24, 2020, when the U.S. Army announced the Pebble Project would significantly degrade the environment, result in significant adverse effects on the aquatic system or human environment, and as proposed "cannot be permitted." This news sent the price of Northern Dynasty shares crashing lower.
On Sept. 21, 2020, the Environmental Investigation Agency released recordings of conversations between Northern Dynasty senior executives and EIA investigators revealing the company's plans to expand the Pebble Project mine operations from 20 years to 180 - 200 years and to expand it geographically.
Finally, on Nov. 25, 2020, Northern Dynasty announced the U.S. Army Corps. of Engineers rejected its Pebble Project permit application under the Clean Water Act, finding the project "is not in the public interest." This news drove the price of Northern Dynasty lower again.
"We're focused on, among other things, investor losses and proving that Northern Dynasty and its senior management intentionally misled investors and manipulated the permitting process to achieve personal compensation for having done so," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Northern Dynasty investor, click here to discuss your legal rights with Hagens Berman.
JOYY Inc. (NASDAQ:YY) Securities Fraud Class Action:
Class Period: Apr. 28, 2016 - Nov. 18, 2020
Lead Plaintiff Deadline: Jan. 19, 2021
Visit: hbsslaw.com/investor-fraud/JOYY
Contact An Attorney Now: [email protected]
844-916-0895
The complaint alleges that Defendants misrepresented and concealed that: (1) JOYY had dramatically overstated its revenues from live streaming sources; (2) the majority of users at any given time were bots; (3) the Company utilized these bots to effect a round-tripping scheme that manufactured the false appearance of revenues; (4) the Company overstated its cash reserves; and (5) the Company's recent acquisition of Bigo was largely contrived to benefit corporate insiders, including JOYY's co-founder, CEO, and Chairman David Xueling Li, who set up Bigo.
Investors began to learn the truth, according to the complaint, on Nov. 18, 2020 when research firm Muddy Waters Capital published a scathing forensic report, "YY: You Can't Make This Stuff Up. Well . . . Actually You Can." Muddy Waters accused JOYY of (1) being a multibillion-dollar fraud, (2) massively overstating reported revenues by engaging in improper round-tripping transactions, and (3) massively overstating Bigo-related revenues and Bigo's valuation to secretly enrich Li when JOYY, in March 2019, paid over $1.4 billion for the remaining 68.5% of Bigo that JOYY did not already own.
This news sent the price of JOYY American Depositary Shares crashing lower on Nov. 18, 2020.
On Nov. 19, 2020, JOYY summarily denied Muddy Waters' report. Instead of substantively refuting Muddy Waters' allegations, the company stressed its $300 million stock buyback program and, the next day, announced an additional dividend. Although these were attempts to stabilize investor confidence, as at least one sell-side analyst recognized, the price of JOYY shares has not recovered.
"We're focused on investors' losses and proving JOYY deceived investors about the Company's true operations and financial results," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a JOYY investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Kandi, Northern Dynasty, and/or JOYY should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected], [email protected], and/or [email protected].
About Hagens Berman
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Contact:
Reed Kathrein
844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP