Hebron Technology Co., Ltd. Class Action Lawsuit
- Company Name
- Hebron Technology Co., Ltd.
- Stock Symbol
- Class Period
- April 24, 2020 to June 3, 2020
- Southern District of New York
The Hebron Technology Co., Ltd. class action lawsuit charges Hebron Technology and certain of its officers with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers of Hebron Technology securities between April 24, 2020 and June 3, 2020 (the “Class Period”). The Hebron Technology class action lawsuit was commenced on June 9, 2020 in the Southern District of New York and is captioned Clynes v. Hebron Technology Co., Ltd., No. 20-cv-04420.
Hebron Technology conducts equipment and engineering service operations focused on the research, development, and manufacture of fluid equipment, including valves and pipe fittings.
The Hebron Technology class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (1) many of Hebron Technology’s acquisitions, including Beijing Hengpu and Nami Holding (Cayman) Co., Ltd., involved undisclosed related parties; (2) Hebron Technology’s disclosure controls regarding related-party transactions were ineffective; and (3) as a result of the foregoing, defendants’ positive statements about Hebron Technology’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On June 3, 2020, Grizzly Research issued a report alleging Hebron Technology was an “insider enrichment scheme without economic basis,” citing questionable transactions, including an undisclosed related-party transaction for nearly $26 million. On this news, Hebron Technology’s share price fell nearly 37%. The stock continued its decline, falling another nearly 18% the next trading session.
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