SAN FRANCISCO, June 10, 2020 /PRNewswire/ -- Hagens Berman urges investors in Hebron Technology Co., Ltd. (NASDAQ: HEBT) to submit their losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
The complaint alleges Defendants concealed related third party transactions and misrepresented the Hebron's financial performance to prop up the company's stock price.
Specifically, the complaint avers that Defendants concealed that (1) many of Hebron's recent "acquisitions" were in fact dysfunctional entities sold by company insiders, (2) the company's disclosure controls regarding related party transactions were ineffective, and (3) as a result, certain of Defendants' positive statements about its performance and outlook were materially misleading.
Investors began to learn the truth, according to the complaint, on June 3, 2020 when Grizzly Research published a scathing report, calling the company an "Insider Enrichment Scheme without Economic Basis."
Grizzly observed that (1) Hebron's stock price has skyrocketed on the back of recent private placements that were in fact inflated stock sales to related parties; (2) the company's financial results filed with Chinese regulators are inconsistent with those filed with the SEC, as Hebron's SEC filings inflate annual revenues by over 80%; and (3) the recent acquired entities were purchased from Hebron's largest shareholder at inflated prices.
This news sent the price of Hebron shares plummeting lower.
"We're focused on investors' losses and proving Hebron concealed related party transactions," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers:Persons with non-public information regarding Hebron Technology should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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