NEW YORK, March 3, 2020 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, continues its investigation into potential securities claims on behalf of shareholders of Canaan Inc. (NASDAQ: CAN) resulting from allegations that Canaan may have issued materially misleading business information to the investing public.
Canaan, a company specializing in Blockchain servers and ASIC microprocessor solutions for use in bitcoin mining, completed its initial public offering in November 2019. Then, on February 20, 2020, after markets closed, an investment analyst operating under the pseudonym Marcus Aurelius published a short report entitled "Canaan Fodder" claiming, among other things, that Canaan was engaged in several undisclosed related-party transactions that lacked economic substance.
For example, the report alleges that just one month before Canaan's IPO, a tiny Hong Kong company named Grandshores announced that it had agreed to purchase up to $150 Million worth of the company's equipment in 2020, even though Grandshores' entire market cap is only $50 million and it reports having only $16 million in cash on hand. Purportedly, the Chairman of Grandshores owns 9.7% of Canaan's outstanding shares through entities he controls -- yet this relationship is not mentioned anywhere in Canaan's SEC filings.
On this news, the Canaan's share priced dropped significantly in after-market trading.
Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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