Kessler Topaz Meltzer & Check, LLP Announces Investor Securities Fraud Class Action Lawsuit Filed Against Ideanomics, Inc.
The law firm of Kessler Topaz Meltzer & Check, LLP reminds that an investor securities fraud class action lawsuit has been filed against Ideanomics, Inc. (NASDAQ: IDEX) (“Ideanomics”) on behalf of those who purchased or otherwise acquired Ideanomics common stock between March 20, 2020 and June 25, 2020, inclusive (the “Class Period”).
Ideanomics investors who purchased or otherwise acquired common stock during the Class Period may, no later than August 27, 2020, seek to be appointed as a lead plaintiff representative of the class.
Investors who wish to discuss this securities fraud class action lawsuit or request additional information about this litigation are encouraged to contact Kessler Topaz Meltzer & Check attorneys James Maro, Jr. or Adrienne Bell at (844) 877-9500 (toll free) or online, click https://www.ktmc.com/ideanomics-inc-class-action?utm_source=PR&utm ....
According to the complaint, Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles (“EV”) and developing next generation financial services and Fintech products.
The Class Period commences on March 20, 2020, when Ideanomics issued a press release in which it announced “that the Qingdao-MEG Sales Center, branded as Mobile Energy Group Center, is scheduled to start sales operations by May 1.” Throughout the Class Period, Ideanomics continued to laud its EV expo center, claiming the MEG Center is “the largest auto trading market in Qingdao,” China. However, the truth was eventually revealed.
According to the complaint, on June 25, 2020, analyst Hindenburg Research issued a series of tweets in which it called Ideanomics “an egregious & obvious fraud.” Hindenburg asserted that it found evidence that Ideanomics had doctored photos for use in its press releases to suggest that it owns or operates a vehicle sales center in Qingdao, China, when it in fact does not. Hindenburg further asserted that it had an investigator go to Ideanomics’ purported MEG Center in Qingdao, China, where the investigator was unable to find any trace of Ideanomics or its purported MEG Center. Also, on June 25, 2020, analyst J Capital Research issued a report on Ideanomics entitled “Champion of Promotes”. J Capital Research wrote, in part, that “Ideanomics . . . is a zero. The company changes its name and promotional story so frequently that it’s hard to keep up. One thing remains a constant, despite all the press releases, buzzwords and hype: shareholders get wiped out.” J Capital Research continued, in a tweet, that “[w]e called all the ‘buyers’ named in [Ideanomics’] press releases this month. Not a single one had made a purchase. One of them thanked us for alerting them to ‘fake news.’” Following this news, Ideanomics’ stock price fell from its June 24, 2020 close of $3.09 to a June 25, 2020 close of $2.44 per share, a one day drop of $0.65 or approximately 21%.