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 Ideanomics, Inc. (“Ideanomics” or the “Company”) (NASDAQ: IDEX) securities during the period from March 20, 2020 through June 25, 2020. Investors have until August 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Ideanomics’ MEG Center in Qingdao was not “a one million square foot EV expo center;” (ii) the Company had been using doctored or altered photographs of the purported Mobile Energy Global (“MEG”) Center in Qingdao; and (iii) the Company’s electric vehicle business in China was not performing nearly as strong as Ideanomics had represented.
On June 25, 2020, analyst Hindenburg Research issued a series of tweets in which it called Ideanomics “an egregious & obvious fraud” and asserted that it found evidence that Ideanomics had doctored photos for use in its press releases to suggest that the Company owns or operates a vehicle sales center in Qingdao, China, when it in fact does not. On the same day, analyst J Capital Research tweeted that, ““[w]e called all the ‘buyers’ named in [Ideanomics’] press releases this month. Not a single one had made a purchase. One of them thanked us for alerting them to ‘fake news.’” On this news, Ideanomics’ share price fell $0.65, or 21.0%, to close at $2.44 per share on June 25, 2020.
On June 26, 2020, Ideanomics walked back certain of its prior statements regarding the MEG Center in Qingdao, stating that it was launching three phases of its MEG Center in Qingdao to eventually total one million square feet but that the first stage was only 215,000 square feet. On this news, Ideanomics’ share price fell $0.98, or 40.2%, to close at $1.46 per share on June 26, 2020.
If you acquired Ideanomics securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP 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.