The China-based manufacturer company, Canaan filed its IPO with the SEC in October 2018 and hoped to raise $400 million. However, Canaan only managed to raise around $90 million when it was listed on the Nasdaq Global Marketplace. Even this year, the company did not perform well as it faced competition from other mining rig manufacturers.
Canaan is being sued for allegedly misleading investors before the IPO.
Canaan investor, Phillippe Lemieux, filed a class-action lawsuit that claims the company violated the Securities Act of 1933, and it misled investors and the Securities and Exchange Commission (SEC) in regards to the company’s financial well being. The investor who filed the lawsuit believes that Canaan misled investors before the IPO sale.
The plaintiff is demanding a trial by jury.
The filing in the District of Oregon notes that Phillippe Lemieux is demanding a trial by jury. The plaintiff and other class members are seeking to be compensated for the damages. The litigation firm representing the plaintiff informed that the claim is brought to the courts within one year after the discovery of the untrue statements made by Canaan, so therefore the case is timely. Since the plaintiff filed the litigation, the share of Canaan has gone down by 11%.
