The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Canaan Inc. (“Canaan” or the “Company”) (NASDAQ: CAN) securities during the period from February 10, 2021 through April 9, 2021 (the “Class Period”). Investors have until June 14, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Canaan designs, manufactures, and sells bitcoin mining machines, primarily in the Peoples Republic of China. On February 9, 2021, Canaan announced that its Chief Financial Officer, Quanfu Hong, had suddenly resigned effective immediately, providing no explanation as to why and citing only personal reasons. The next day, February 10, 2021, Canaan issued a press release announcing that its revenue visibility ha[d] improved substantially and making other positive statements about purported visibility into increases in the size and quality of orders Canaan had been receiving. The market reacted positively to Canaans statements, driving up the market price of Canaan ADRs by nearly 90%.
On Monday, April 12, 2021, before the opening of trading, Canaan issued a press release disclosing its actual 4Q20 and fiscal year 2020 financial results for the period ended December 31, 2020, including a 93% year-over-year decrease in computing power sold and net revenues for the quarter. On this news, the market price of Canaan ADRs collapsed from a close of $18.67 per ADR on April 9, 2021 to a close of $13.14 per ADR on April 12, 2021, a decline of nearly 30% on unusually high volume, damaging investors.
If you acquired Canaan securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.