Crypto Mining Producer Canaan Faces Class Action Lawsuit
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5 March
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Chinese cryptocurrency mining hardware maker Canaan Inc. is facing a class Action Lawsuit from Rosen Law Firm, an investor rights law firm, on behalf of purchasers of the securities of Canaan pursuant and traceable to the company’s IPO commenced on November 20, 2019.

The firm says in an official press release that the lawsuit seeks to recover damages for Canaan investors under the federal securities laws.

As the lawsuit states, defendants throughout the class period made false and misleading statements and failed to disclose that the purported strategic cooperation was actually a transaction with a related party.

Chinese Mining Hardware Maker Canaan's Shares Soar 80%

In addition to that, the firm says Canaan has lied on its financial health and that the company had recently removed numerous distributors from its website just prior to the IPO, many of which were small or suspicious businesses.

Earlier iHodl reported that Canaan attracted a total of $90M during its IPO on NASDAQ.

The company reportedly sold about 10 million shares at a price of $9, raising $90M in total. This amount is significantly lower than what Canaan initially expected to raise during its IPO. The company had reported that it planned to raise around $400M, which is $310M more. However, it later lowered its target to $100M.

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