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 EHang Holdings Limited who purchased shares between December 12, 2019 and February 16, 2021.
EHang and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On February 16, 2021, Wolfpack Research reported that, based on “extensive evidence…including behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH’s various facilities,” the Company is “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts with a customer who appears to us to be more interested in helping inflate the value of its investment in EH…than actually buying its products” and that it “has perpetuated its story with a collection of lies about its products, manufacturing, revenues, partnerships, and potential regulatory approval of its purported main business.”
On this news, the price of EHang’s shares plummeted to a close of $46.30 per share, a one day drop of $77.79 per share or approximately 62.7%.
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 April 19, 2021 to request that the court appoint them lead plaintiff.