NEW YORK, Feb. 23, 2021 (GLOBE NEWSWIRE) — Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ:EH) and certain of its officers, alleging violations of federal securities laws. If you purchased EHang shares between December 12, 2019 and February 16, 2021, inclusive (the “Class Period”), and have suffered a loss, you are encouraged to contact Joe Pettigrew for additional information at (844) 818-6982 or email@example.com.
EHang purports to be an autonomous aerial vehicle (“AAV”) technology platform company engaged in pioneering the future of transportation and related commercial solutions.
The lawsuit alleges, among other things, that the Company made materially false and/or misleading statements and/or failed to disclose that: (i) the Company’s purported regulatory approvals in Europe and North American for its EH216 AAV were for use as a drone, and not for carrying passengers; (ii) its relationship with its purported primary customer is a sham; (iii) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019; and (iv) the Company’s manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees
On February 16, 2021, Wolfpack Research published a report entitled “EHang: A Stock Promotion Destined to Crash and Burn,” which alleged that the Company promoted its stock based on fabricated revenues. Specifically, the report claimed that much of the Company’s revenue was based on sham sales made by customers who were primarily interested in artificially “pumping” EHang’s stock price rather than becoming genuine purchasers of EHang’s products. The report further detailed that EHang had a collection rate of 20% on its reported sales, and that the company holding most of EHang’s Chinese assets had much of its equity frozen by a Chinese court due to questionable transactions.
On this news, the price of EHang American Depository Shares (“ADS” or “shares”) price fell 62% on February 16, down from its previous close price of $124.09 to a close price of $46.30.
What You Can Do
If you purchased EHang securities between December 12, 2019 and February 16, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or firstname.lastname@example.org. The lead plaintiff deadline is April 19, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.