NEW YORK, Nov. 15, 2016 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Kandi Technologies Group, Inc. ("Kandi" or the "Company") (NASDAQ: KNDI). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 237.
The investigation concerns whether Kandi and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
On March 15, 2016, the Chinese financial journal Caixin published an article reporting that the Chinese government was investigating electric car manufacturers and local officials that may have defrauded the government of millions of dollars in subsidies through a scheme whereby manufacturers were selling vehicles to their own rental subsidiaries (the "Investigation"). On this news, Kandi's share price fell $0.97, or 10.51%, to close at $8.26 on March 15, 2016. On November 9, 2016, the Company announced its financial results for the third quarter of 2016. Kandi's revenue fell over 87% year-over-year, and the Company's bottom line fell to a $600,000 loss following a decision by the Chinese government to withhold subsidies pending the results of the Investigation, depriving Kandi of operating capital. On November 14, 2016, the Company announced that its Chief Financial Officer ("CFO"), Wang Chen, would resign from that post to assume the position of Chief Strategy Officer, and that Mei Bing was appointed Kandi's new CFO.
On this news, Kandi's share price fell $0.40, or 10.26%, to close at $3.50 on November 14, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP