Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of Canaan Inc. who purchased shares between February 10, 2021 and April 9, 2021.
Canaan and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On April 12, 2021, pre-market, the Company disclosed dismal 4Q20 and FY20 financial results for the period ended December 31, 2020, including a 93% year-over-year decrease in computing power sold and net revenues for the quarter, a stark contrast to the Company’s prior positive statements touting its business metrics and financial prospects.
On this news, ADRs of Canaan plummeted nearly 30%, from a close of $18.67 per ADR on April 9, 2021 to close at $13.14 on April 12, 2021, on unusually high volume.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until June 14, 2021 to request that the court appoint them lead plaintiff.