BOSTON, Jan. 26, 2021 (GLOBE NEWSWIRE) -- On November 30, 2020, analyst Hindenburg Research published a report concerning Kandi Technologies Group, Inc. (NASDAQ: KNDI), calling Kandi “a brazen scheme” that “falsif[ied] revenue using fake sales to undisclosed affiliates.” Hindenburg said that its report was based on “interviews with over a dozen former employees and business partners” of Kandi, as well as an “extensive on-the-ground inspection at Kandi’s factories and customer locations in China.” Hindenburg asserted that approximately 64% of Kandi’s sales in the last twelve months were to undisclosed related parties, and that Kandi “has consistently booked revenue it cannot collect, a classic hallmark of fake revenue.” The market was stunned by this report, and as a result, shares of KNDI fell over 28% in one trading day.
A lawsuit has been filed against Kandi and certain of its executives in the U.S. District Court for the Eastern District of New York. The lawsuit is captioned Valdés v. Kandi Technologies Group, Inc., et al., No. 1:20-cv-06042 (E.D.N.Y.). The suit alleges, among other things, that Kandi artificially inflated its reported revenues through undisclosed related party transactions and that the majority of Kandi’s sales in the last year were to undisclosed related parties or parties with such a close relationship to Kandi that it cast doubt on the arms-length nature of their relationship.
If you purchased or acquired shares of Kandi securities between March 15, 2019 and November 27, 2020 and lost money, you are strongly encouraged to contact the nationally-recognized securities law firm Block & Leviton LLP (www.blockleviton.com) at (617) 398-5600, via email at email@example.com, or at https://www.blockleviton.com/cases/kndi. The deadline to move the Court to be appointed lead plaintiff is February 9, 2021.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP