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SOS Limited Class Action Lawsuit

Company Name
SOS Limited
Stock Symbol
SOS
Class Period
July 22, 2020 to February 25, 2021
Motion Deadline
May 30, 2021
Court
District of New Jersey
48 days left to seek lead plaintiff status

Case Summary

The SOS Limited class action lawsuit charges SOS Limited and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of SOS Limited American Depository Shares (“ADSs”) between July 22, 2020 and February 25, 2021, inclusive (the “Class Period”).  The SOS Limited class action lawsuit was commenced on March 30, 2021 in the District of New Jersey and is captioned Beltran v. SOS Limited, No. 21-cv-07454.

SOS Limited rebranded itself into an emergency services business in mid-2020.  By January 2021, SOS Limited again shifted its business focus, this time to cryptocurrency mining.  Critical to SOS Limited’s purportedly successful transition into a cryptocurrency mining business were SOS Limited’s claims to have entered into an agreement with HY International Group New York Inc. (“HY”) to acquire 15,645 mining rigs – i.e., personal computing machines built specifically for cryptocurrency mining – for $20 million, and SOS Limited’s plans to purchase FXK Technology Corporation (“FXK”), a purported Canadian cryptocurrency technology firm.

The SOS Limited class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) SOS Limited had misrepresented the true nature, location, and/or existence of at least one of the principal executive offices listed in its U.S. Securities and Exchange Commission (“SEC”) filings; (ii) HY and FXK were either undisclosed related parties and/or entities fabricated by SOS Limited; (iii) SOS Limited had misrepresented the type and/or existence of the mining rigs that it claimed to have purchased; and (iv) as a result, SOS Limited’s public statements were materially false and misleading at all relevant times.

On February 26, 2021, Hindenburg Research and Culper Research released commentary on SOS Limited, claiming that SOS Limited was an intricate “pump and dump” scheme that used fake addresses and doctored photos of crypto mining rigs to create an illusion of success.  The analysts noted, for example, that SOS Limited’s SEC filings listed a hotel room as SOS Limited’s headquarters.  The analysts also questioned whether SOS Limited had actually purchased mining rigs that it claimed to own, as the entity from which SOS Limited purportedly bought the mining rigs appeared to be a fake shell company.  Culper noted that photographs of SOS Limited’s “miners” did not depict the A10 Pro machines that SOS Limited claimed to own and instead appeared to show different devices altogether.  Hindenburg, for its part, found that the original images from SOS Limited’s website actually belonged to another company.  On this news, the price of SOS Limited’s ADSs fell, damaging investors

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased SOS Limited ADSs during the Class Period to seek appointment as lead plaintiff in the SOS Limited class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the SOS Limited class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the SOS Limited class action lawsuit.  An investor’s ability to share in any potential future recovery of the SOS Limited action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the SOS Limited class action lawsuit or have questions concerning your rights regarding the SOS Limited class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the SOS Limited class action lawsuit must be filed with the court no later than May 31, 2021.

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.

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