お知らせ • Apr 01
Pomerantz Law Firm Announces the Filing of a Class Action Against SOS Limited and Certain Officers
Pomerantz LLP announced that a class action lawsuit has been filed against SOS Limited, and certain of its officers. The class action, filed in the United States ("U.S.") District Court for the District of New Jersey, and docketed under 21-cv-07454, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired SOS American depository shares ("ADSs") between July 22, 2020 and February 25, 2021, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission ("SEC"), against the company and certain of its top officials. Critical to SOS's purportedly successful transition into a cryptocurrency mining business were the company's claims to have entered into an agreement with HY International Group New York Inc. ("HY"), which calls itself the world's mining machine matchmaker, to acquire 15,645 mining rigs —i.e., personal computing machines built specifically for cryptocurrency mining—for $20 million, and the Company's plans to purchase FXK Technology Corporation ("FXK"), a purported Canadian cryptocurrency technology firm. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: SOS had misrepresented the true nature, location, and/or existence of at least one of the principal executive offices listed in its SEC filings; HY and FXK were either undisclosed related parties and/or entities fabricated by the company; the company had misrepresented the type and/or existence of the mining rigs that it claimed to have purchased; and as a result, the company's public statements were materially false and misleading at all relevant times. On February 26, 2021, Hindenburg Research and Culper Research released commentary on SOS, claiming that the company was an intricate pump and dump scheme that used fake addresses and doctored photos of crypto mining rigs to create an illusion of success. The analysts noted, for example, that SOS's SEC filings listed a hotel room as the Company's headquarters. The analysts also questioned whether SOS had actually purchased mining rigs that it claimed to own, as the entity from which SOS purportedly bought the mining rigs appeared to be a fake shell company. The analysts further alleged that the photos SOS had published of their purported mining rigs were phony. Culper noted that photographs of SOS's miners did not depict the A10 Pro machines that the Company claimed to own and instead appeared to show different devices altogether. Hindenburg, for its part, found that the original images from SOS's website actually belonged to another company. On this news, SOS's American depositary share ("ADS") price fell $1.27 per share, or 21.03%, to close at $4.77 per ADS on February 26, 2021. After the end of the Class Period, between February 27 and March 3, 2021, Hindenburg subsequently provided additional information on SOS that further supported its earlier allegations, including pictures, highlighting, inter alia, how SOS had allegedly taken steps to hide the misconduct noted in the February 26, 2021 corrective disclosures.