|Company Name||Ideanomics, Inc.|
|Class Period||March 20, 2020 to June 25, 2020|
|Lead Plaintiff Motion Deadline||August 27, 2020|
On June 25, 2020, Hindenburg Research issued a series of tweets stating that Ideanomics “is an egregious & obvious fraud.” Hindenburg claimed that it found evidence that Ideanomics “doctored photos in its PR to suggest it owns/operates” a facility. Hindenburg further stated that it had an investigator who visited Ideanomics’ “supposed MEG sales center,” and that the “facility is actually operated by almost 100 sales groups,” that had never heard of Ideanomics. Additionally, Hindenburg claimed that its investigator called five of Ideanomics’ purported electric vehicle customers, and that none were aware of Ideanomics, nor could they confirm doing business with Ideanomics.
The same day, J Capital Research published a report, corroborating Hindenburg’s allegations. Specifically, J Capital “called all the ‘buyers’ named in [the Company’s] 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, the Company’s share price fell $0.65, or more than 21%, to close at $2.44 per share on June 25, 2020, thereby injuring investors.
Then, on June 26, 2020, the Company issued a press release, seeking to “clarify the status” of its purported hub in Qingdao, China. Therein, Ideanomics walked back certain of its prior statements regarding the MEG Center, stating its as launching three phases of its MEG Center that will eventually total one million square feet. The first phase occupies only 215,000 square feet.
On this news, the Company’s share price fell $0.98, or 40%, to close at $1.46 per share on June 26, 2020, thereby injuring investors further.
The complaint filed in this class action 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: (1) that Ideanomics’ MEG Center in Qingdao was not “a one million square foot EV expo center”; (2) that the Company had been using doctored or altered photographs of the purported MEG Center in Qingdao; (3) that the Company’s electric vehicle business in China was not performing nearly as strong as Ideanomics had represented; and (4) that, as a result, the Company’s public statements were materially false and misleading at all relevant times.
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