Pomerantz LLP announces that a class action lawsuit has been filed against Kandi Technologies Group, Inc. (“Kandi” or the “Company”) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-01944, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Kandi securities between March 16, 2015 and March 13, 2017 both dates inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
Kandi Technologies Group, Inc., through its subsidiaries, designs, produces, manufactures, and distributes electric vehicles (EVs) products, EV parts, and off-road vehicles in the People’s Republic of China and internationally. Its EV parts comprise battery packs, body parts, EV drive motors, EV controllers, air conditioning units, and other auto parts.
The complaint 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 made false and/or misleading statements and/or failed to disclose that: (i) certain areas in the Company’s previously issued financial statements for the years ended December 31, 2015 and 2014, and the first three quarters for the year ended December 31, 2016 required adjustment; (ii) in turn, the Company lacked effective internal controls over financial reporting; and (iii) as a result of the foregoing, Kandi’s public statements were materially false and misleading at all relevant times.
On November 14, 2016, the Company announced the abrupt resignation of Cheng Wang, the Company’s Chief Financial Officer (“CFO”) at the time. On this news, Kandi’s share price fell $0.40, or over 10%, to close at $3.50 on November 14, 2016.
On March 13, 2017, post market, Kandi filed a Current Report on Form 8-K with the SEC, announcing that the Company would restate previously issued financial statements for the years ended December 31, 2015 and 2014, and the first three quarters for the year ended December 31, 2016. On this news, Kandi’s share price fell $0.30, or approximately 6%, to close at $4.05 on March 14, 2017.