SAN FRANCISCO, February 17, 2021 / PRNewswire / – Hagens Berman urges investors in EHang Holdings Limited (NASDAQ: EH) to file their losses now. The company is investigating a possible securities fraud.
Investigation by EHang Holdings Limited (EH):
The Company is investigating whether EH has misrepresented and concealed facts related to its financial performance, key customers, and government approvals that it allegedly received for its alleged core business, an “Autonomous” Ridesharing Network (“AAV”).
Since going public in 2019, EH has sales agreements with major customer Shanghai Kunxiang Intelligent Technology Co., Ltd. (“Kunxiang”) completed. The company has also issued a series of press releases highlighting the numerous “flight certifications” and “long-term” approvals the company has received for its “passenger class” EH216 in the US. Canada and different countries throughout Europe.
But go on February 16, 2021Analyst Wolfpack Research published a scathing report entitled “EHang: A Stock Promotion For Crash and Burn”. In the 33-page report, Wolfpack Research claims Kunxiang entered into bogus contracts to promote EH’s share price. Wolfpack Research also claims that EH has exaggerated revenue by reporting sales for which it cannot generate revenue. Wolfpack Research also notes that EH is alleging bogus regulatory approvals that it allegedly received, misleadingly suggesting that the company has commercial approval for its products.
In the news, EH shares fell sharply.
“We are focused on investor losses and whether EH lied about its earnings, customers and regulatory approvals,” he said Reed Kathrein, the Hagens Berman partner who led the investigation.
If you are a retail investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with nonpublic information about EH should review their options to help with the investigation or use the SEC whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. Please call for more information Reed Kathrein at 844-916-0895 or by email [email protected].
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SOURCE Hagens Berman Sobol Shapiro LLP