Kandi Technologies Group, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Kandi Technologies Group, Inc. (“Kandi” or the “Company”) (NASDAQ: KNDI) securities during the period from June 10, 2015 through March 13, 2017 (the “Class Period”). Investors have until August 10, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Kandi failed to disclose that: (i) certain areas in the Company’s previously issued financial statements for the years ended December 31, 2015, and 2014, and the first three quarters for the year ended December 31, 2016 required adjustment; and (ii) the Company lacked effective controls over financial reporting.
On November 14, 2016, the Company announced the abrupt resignation of Defendant Wang as the Chief Financial Officer. On this news, shares of Kandi fell $0.40, or 10.3%, to close at $3.50 per share on November 14, 2016.
On March 13, 2017, the Company filed a Form 8-K with the SEC revealing that its previously issued financial statements for the years ended December 31, 2015 and 2014, and the first three quarters for the year ended December 31, 2016 would need to be restated. On this news, shares of Kandi fell $0.30, or 6.9%, to close at $4.05 per share on March 14, 2017.
On March 16, 2017, the Company filed its Form 10-K for fiscal year 2016, restated its 2014 through 3Q 2016 Financials, and admitted that there were material weaknesses in the Company’s internal controls. Kandi conceded that it had made “errors” in the classification of notes receivable and notes payable in its statement of cash flows, it had failed to separately identify certain related party accounts on the face of the Company’s balance sheets and income statements, and it had improperly accounted for the Company’s equity investment in the JV Company.
If you acquired Kandi 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 firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.