Canaan, a bitcoin (EXANTE: Bitcoin) mining manufacturer, is facing a class action lawsuit as the company allegedly violated the securities laws. According to Robbins Geller Rudman & Dowd LLP, Canaan’s statements about its business metrics and financial prospects were "materially false and misleading."
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The law firm claims Canaan concealed that its fourth quarter of fiscal year 2020 sales had declined more than 93% year-over-year compared to its fourth quarter fiscal year 2019.
Another law firm, Johnson Fistel, LLP, has also filed a class action lawsuit against Canaan on the same grounds. The Portnoy Law Firm already notified Canaan's investors that the firm has "initiated an investigation" into possible securities fraud, and may file a class action on behalf of investors as well.
As iHodl earlier reported, Canaan's total net loss in 2020 was $33 million. Nonetheless, this loss is lower than in 2019 when the company lost $148 million.
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