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The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Canaan Inc. ("Canaan" or the "Company") (NASDAQ: CAN) American Depositary Receipts ("ADRs") between February 10, 2021 and April 9, 2021, inclusive (the "Class Period"). Canaan investors have until June 14, 2021 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
On April 12, 2021, before the markets opened, Canaan announced its fourth quarter and fiscal year 2020 financial results in a press release. Therein, the Company reported a 93% year-over-year decrease in computing power sold and net revenues for the quarter, citing "a severe supply shortage" of "mining machine" chips during the quarter. The Company also revealed that older machines were sold for lower prices than the newer machines for which Canaan received pre-orders, despite prior statements that the price of bitcoin mining machines typically increased with the price of bitcoin, which had risen dramatically during the fourth quarter.
On this news, Canaan’s ADR price fell $5.53, or 30%, to close at $13.14 per ADR on April 12, 2021, thereby injuring investors.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Canaan had experienced significant ongoing supply chain disruptions during fourth quarter 2020 ("4Q20"); (2) the introduction of Canaan’s next-generation A12 series bitcoin mining machines had cannibalized sales of the older product offerings during the 4Q20; (3) as a result of the foregoing, Canaan’s 4Q20 sales and sales revenues had declined dramatically; and (4) as a result of the foregoing, Canaan was not on track to achieve the strong financial prospects it had led the market to believe.
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If you purchased Canaan securities during the Class Period, you may move the Court no later than June 14, 2021 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Canaan securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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