ACM Research, Inc. Class Action Lawsuit
- Company Name
- ACM Research, Inc.
- Stock Symbol
- Class Period
- March 6, 2019 to October 7, 2020
- Northern District of California
The ACM Research, Inc. class action lawsuit charges ACM Research and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of ACM Research securities between March 6, 2019 and October 7, 2020, inclusive (the “Class Period”). The ACM Research class action lawsuit was commenced on December 21, 2020 in the Northern District of California and is captioned Kain v. ACM Research, Inc., No. 20-cv-09241.
ACM Research develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide. ACM Research markets and sells its products under the Ultra C brand name through a direct sales force and third-party representatives.
The ACM Research class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) ACM Research’s revenues and profits had been diverted to undisclosed related parties; (ii) accordingly, ACM Research had materially overstated its revenues and profits; and (iii) as a result, ACM Research’s public statements were materially false and misleading at all relevant times.
On October 8, 2020, J Capital Research published a report concerning ACM Research in which J Capital concluded that ACM Research “is a fraud, over-reporting both revenue and profit.” The report cited, among other things, J Capital’s visits to “sites in China, Korea, and California” and “more than 40 interviews.” J Capital asserted that “[w]hat real profit the company has is apparently being siphoned off to related parties.” The J Capital report concluded that ACM Research’s revenue was overstated by 15%-20% and claimed to have “evidence that undisclosed related parties are diverting revenue and profit from the company.” On this news, ACM Research’s stock price fell, damaging investors.
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