NEW YORK, March 26, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that class action lawsuits have been filed on behalf of stockholders of Ebix, Inc., EHang Holdings Limited, Ontrak, Inc., and Plug Power Inc. Investors have until the deadlines below to apply to the Court to be appointed as lead plaintiff in the lawsuit. Additional information about each case can be found at the links provided below.
Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX)
Class Period: November 9, 2020 to February 19, 2021
Lead Plaintiff Deadline: April 23, 2021
On February 19, 2021, after the market closed, Ebix revealed that its independent auditor, RSM US LLP (“RSM”), resigned “as a result of being unable, despite repeated inquiries, to obtain sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020” related to the Company’s gift card business in India. RSM had also stated that there was a material weakness related to Ebix’s failure to design controls “over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement.” In addition, Ebix and RSM disagreed over the accounting treatment of $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel in December 2020.
On this news, the Company’s share price declined by $20.24 per share, or approximately 40%, to close at $30.50 per share on February 22, 2021, on unusually heavy trading volume.
The lawsuit alleges that throughout the Class Period Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India during the fourth quarter of 2020; (2) that there was a material weakness in the Company’s internal controls over the gift or prepaid revenue transaction cycle; and (3) that the Company’s independent auditor was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For additional information on the Ebix lawsuit please visit this website.
EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ: EH)
Class Period: December 9, 2019 to February 16, 2021
Lead Plaintiff Deadline: April 19, 2021
On February 16, 2021, analyst Wolfpack Research published a research report entitled “EHang: A Stock Promotion Destined to Crash and Burn.” Citing “extensive evidence” including “behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH’s various facilities,” the report alleged that EHang is “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd.] who appears to us to be more interested in helping inflate the value of its investment in EH…than about buying its products.” Wolfpack Research also noted that “in just 14 months as a publicly traded company, EH’s PR team has put out 50 press releases…However, EH’s constant stream of press releases are easily proven untrue.” Finally, the report alleged that Wolfpack Research “obtained Chinese court records which show that EH’s ADRs may already be in serious jeopardy due to legal issues in China.”
On this news, the Company’s share price declined by $77.79 per share, or approximately 62.7%, to close at $46.30 per share on February 16, 2021, thereby injuring investors.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s purported regulatory approvals in Europe and North America for its EH216 were for use as a drone, and not for carrying passengers; (2) its relationship with its purported primary customer is a sham; (3) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019; (4) the Company’s manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees; and (5) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.
For additional information on the EHang lawsuit please visit this website.
Ontrak, Inc. (“Ontrak” or the “Company”) (NASDAQ: OTRK)
Class Period: November 5, 2020 to February 26, 2021
Lead Plaintiff Deadline: May 3, 2021
On March 1, 2021, Ontrak issued a press release announcing preliminary financial results for the fourth quarter and full year 2020. Therein, the Company stated that its largest customer had terminated its contract with Ontrak, effective June 26, 2021. The Company stated that this customer “evaluated Ontrak on a provider basis” and “[a]s such, the customer evaluated [Ontrak’s] performance based on [its] ability to achieve the lowest possible cost per medical visit, and not on [its] clinical outcomes data or medical cost savings.” The Company also stated that “the coaching model which Ontrak has pioneered for over a decade was seen by the customer to be less relevant to their performance metrics.”
On this news, the Company’s share price declined by $27.32 per share, or approximately 46.4%, to close at $31.62 per share on March 1, 2021, thereby injuring investors.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Ontrak’s largest customer evaluated the Company on a provider basis, valuing Ontrak’s performance based on achieving the lowest cost per medical visit rather than clinical outcomes or medical cost savings; (2) that, as a result, Ontrak’s largest customer did not find the Company’s program to be effective and was reasonably likely to terminate its contract with Ontrak; (3) that, because this customer accounted for a significant portion of the Company’s revenue, the loss of the customer would have an outsized impact on Ontrak’s financial results; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For additional information on the Ontrak lawsuit please visit this website.
Plug Power Inc. (“Plug” or the “Company”) (NASDAQ: PLUG)
Class Period: November 9, 2020 to March 1, 2021
Lead Plaintiff Deadline: May 7, 2021
On March 2, 2021, before the market opened, Plug filed a Notification of Late Filing with the SEC stating that it could not timely file its annual report for the period ended December 31, 2020 because the Company was completing a “review and assessment of the treatment of certain costs with regards to classification between Research and Development versus Costs of Goods Sold, the recoverability of right of use assets associated with certain leases, and certain internal controls over these and other areas.” The Company stated that “[i]t is possible that one or more of these items may result in charges or adjustments to current and/or prior period financial statements.”
On this news, the Company’s stock price declined by $3.68 per share, or approximately 7%, to close at $48.78 per share on March 2, 2021, on unusually heavy trading volume. The share price continued to decline by $9.48 per share, or approximately 19.4%, over three consecutive trading days to close at $39.30 per share on March 5, 2021, on unusually heavy trading volume.
The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company would be unable to timely file its 2020 annual report due to delays related to the review of classification of certain costs and the recoverability of the right to use assets with certain leases; (2) that the Company was reasonably likely to report material weaknesses in its internal control over financial reporting; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For additional information on the Plug lawsuit please visit this website.
About Kirby McInerney LLP:
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600
investigations@kmllp.com
www.kmllp.com