Kandi Technologies Group, Inc. Class Action Lawsuit
- Company Name
- Kandi Technologies Group, Inc.
- Stock Symbol
- Class Period
- March 15, 2019 to November 27, 2020
- Eastern District of New York
The Kandi Technologies Group, Inc. class action lawsuit charges Kandi Technologies and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Kandi Technologies securities between March 15, 2019 and November 27, 2020, inclusive (the “Class Period”). The Kandi Technologies class action lawsuit was commenced on December 11, 2020 in the Eastern District of New York and is captioned Valdés v. Kandi Technologies Group, Inc., No. 20-cv-06042.
Headquartered in the People’s Republic of China, Kandi Technologies, through its subsidiaries, designs, develops, manufactures, and commercializes electric vehicle (“EV”) products and parts and off-road vehicles in China and internationally.
The Kandi Technologies class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Kandi Technologies artificially inflated its reported revenues through undisclosed related-party transactions or otherwise had relationships with key customers that indicated those customers did not have an arm’s-length relationship with Kandi Technologies; (ii) the majority of Kandi Technologies’ sales in the past year had been to undisclosed related parties and/or parties with such a close relationship and history with Kandi Technologies that it cast doubt on the arm’s-length nature of their relationship; (iii) all the foregoing, once revealed, was foreseeably likely to cast doubt on the validity of Kandi Technologies’ reported revenues and, in turn, have a foreseeable negative impact on Kandi Technologies’ reputation and valuation; and (iv) as a result, Kandi Technologies’ public statements were materially false and misleading at all relevant times.
On November 30, 2020, Hindenburg Research published a report entitled “Kandi: How This China-Based NASDAQ-Listed Company Used Fake Sales, EV Hype to Nab $160 Million From U.S. Investors.” Citing “extensive on-the-ground inspection at Kandi [Technologies’] factories and customer locations in China, interviews with over a dozen former employees and business partners, and review of numerous litigation documents and international public records,” Hindenburg asserted that almost 64% of Kandi Technologies’ sales over the year had been to undisclosed related parties. Hindenburg also alleged that “[Kandi Technologies] ha[d] consistently booked revenue it cannot collect, a classic hallmark of fake revenue.” On this news, Kandi Technologies’ stock price fell more than 28%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.