Silver Law Group Investigating Canaan Inc. (CAN) For Potential Violations Of Securities Laws
Silver Law Group, a nationally-recognized class action law firm representing investors, is investigating Canaan Inc. (CAN) on behalf of shareholders in the company for potential violations of the federal securities laws.
If you own/ed Canaan Inc. (CAN) shares and have questions regarding your legal rights, or you are in possession of information that is relevant to this matter, contact Silver Law Group for a no-cost consultation at (800) 975-4345 to discuss potential options.
Canaan Inc. (CAN) is a publicly-traded Chinese company that designs and sells Bitcoin mining equipment. The company held its initial public offering (IPO) in November, 2019, raising $90 million. Citigroup Inc., China Renaissance Holdings Ltd., and CMB International Capital Ltd. were lead managers for the offering. The company reportedly lost Credit Suisse Group AG as its lead underwriter before the IPO.
Canaan Inc. (CAN) Alleged To Have Engaged In Related-Party Transactions
The investigation concerns whether Canaan failed to disclose important information and/or issued false and misleading statements to investors.
On February 20, 2020, an investment analyst writing under the name “Marcus Aurelius” published a research report titled “Canaan Fodder” which alleged that Canaan engaged in multiple undisclosed related-party transactions that did not have economic substance.
Specifically, the report alleges that weeks before Canaan’s IPO a small Hong Kong company called Grandshores announced that it would purchase up to $150 million worth of Canaan’s equipment even though Grandshores reportedly had only $16 million in cash on hand. The report states that the chairman of Grandshores owns a significant amount of Canaan’s stock, which was not disclosed in Canaan’s SEC filings.
Following the publishing of the report, Canaan’s share price dropped significantly, causing shareholders to suffer damages.
A class in this case has not been certified and a deadline has not yet been set to apply to be lead plaintiff.
Recovering Money Lost With Canaan (CAN) Stock
Silver Law Group represents the interests of investors who have losses related to investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court, investors in FINRA arbitration claims against Wall Street firms for stockbroker misconduct, and SEC whistleblowers.
Scott Silver, Silver Law Group’s managing partner, is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide. Please contact Scott Silver of the Silver Law Group for a consultation at email@example.com or toll free at (800) 975-4345.