Singularity Future Technology Ltd.
|Company Name||Singularity Future Technology Ltd.|
|Class Period||February 12, 2021 to November 17, 2022|
|Lead Plaintiff Motion Deadline||February 07, 2023|
On May 5, 2022, Hindenburg Research published a report which alleged, among other things, that “Singularity’s CEO, Yang Jie, is a fugitive on the run from Chinese authorities for running an alleged $300 million Ponzi scheme that lured in over 20,000 victims” and “fled to the U.S. while at least 28 other individuals involved in the case were sentenced to prison terms ranging from 6 months to 15 years.” Furthermore, the report stated that “Singularity’s massive [cryptocurrency] mining rig deal appears to be a brazen undisclosed related party deal” and that “[w]e see little evidence that Singularity’s ‘proprietary’ crypto mining rigs ever existed in the first place. The photos and descriptions of Singularity’s miners match precisely with another brand called KOI Miner.”
On this news, Singularity’s stock price fell $1.95, or 28.9%, to close at $4.80 per share on May 5, 2022, thereby injuring investors.
Then, on October 7, Singularity disclosed issues with its internal controls by reporting a potential delisting by NASDAQ after receiving a delinquency notice in May indicating that the Company was not in compliance with Nasdaq Listing Rule 5250(c)(1) due to delay in filing its quarterly report and not providing a definitive plan evidencing its ability to file to report within the 180 day period given to regain compliance.
On this news, Singularity’s stock price fell $0.27, or 10.6%, to close at $2.29 per share on October 7, 2022, thereby injuring investors further.
Then, on November 16, 2022, the Company disclosed that it had received subpoenas from the United States Attorney’s Office for the Southern District of New York and the United States Securities and Exchange Commission.
On this news, Singularity’s stock price fell $1.44, or 56%, over the next two consecutive trading days to close at $1.13 per share on November 16, 2022, 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) Jie’s true educational background, that he had an outstanding arrest warrant in China, committed forgery, and was the largest shareholder and VP of Finance for a Nasdaq-listed lending company, CCC, which failed after reporting massive losses; (2) material related party transactions with SOS and Rich Trading; (3) Director John Levy’s prior tenure from January 2013 through December 2016 as a director of CCC which failed amidst detailed allegations that Jie, when he was an executive and shareholder in CCC, misappropriated assets; (4) the Company lacked adequate internal controls and as a result had a heightened risk of scrutiny and ultimately was subject to a United States Attorney’s Office for the Southern District of New York and SEC investigation and action as well as a potential delisting by NASDAQ; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times
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