SOS Limited (SOS) Securities Fraud Class Action:
The complaint centers on SOS's purported entry into the bitcoin mining business. The complaint alleges that, in truth, SOS is a fraudulent stock promotion scheme that has concealed related party transactions, and has misrepresented the bitcoin mining rigs SOS claimed to have purchased.
Investors allegedly began to learn the truth on Feb. 26, 2021, when Hindenburg Research and Culper Research released scathing commentary, claiming that SOS was an intricate "pump and dump" scheme that used fake addresses and doctored photos of crypto miners to create an illusion of success. The analysts pointed out that the company's SEC filings, for instance, listed a hotel room as the firm's headquarters. Most damaging, the analysts alleged that the photos SOS had published of their "mining rigs" were phony. Culper noted that the photographed SOS "miners" weren't the A10 Pros the company claimed to own. Instead, they were pictures of Avalon's A1066 miners. Hindenburg further found the original images from SOS's site belonged to a legitimate rival, RHY.
After the class period, Hindenburg and Culper provided additional information on SOS that further supported their earlier allegations, including evidence of related party transactions and SOS attempting to hide the misconduct noted in the February 26, 2021 corrective disclosures.
"We're focused on investors' losses and proving SOS is a false promotion scheme," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a SOS investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding SOS 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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SOURCE Hagens Berman Sobol Shapiro LLP