SAN FRANCISCO, Jan. 12, 2024 (GLOBE NEWSWIRE) — Hagens Berman urges EHang Holdings Limited (NASDAQ: EH) investors who suffered substantial losses to submit your losses now.
Class Period: Jan. 20, 2022 – Nov. 6, 2023
Lead Plaintiff Deadline: Feb. 2, 2024
Visit: www.hbsslaw.com/investor-fraud/EH
Contact An Attorney Now: EH@hbsslaw.com
844-916-0895
EHang Holdings Limited (EH) Securities Fraud Class Action:
“We are determining whether EHang hid flight restrictions that came with its highly touted certification issued by the Civil Aviation Administration of China,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
“We are also investigating whether the company lied to investors about its technology and book orders,” said Kathrein.
The complaint alleges that EHang has continued to state that it was partnering with United Therapeutics, DHL and Vodafone, among others, even though according to a former EHang employee, United Therapeutics, DHL, and Vodafone have abandoned their respective deals with EHang.
The complaint also alleges that EHang omitted that other entities that had placed pre-orders for its aircraft, such as Prestige Aviation and Shenzhen Boling Holding Group, did not engage in regular business in the aviation sector and are otherwise almost certainly not in a financial position to be able to afford their orders.
The truth emerged on Nov. 7, 2023, when Hindenburg Research published a scathing report about EHang, raising concerns about EHang’s purported deals with entities called United Therapeutics, Prestige Aviation, AirX, Shenzhen Boling Holdings Group, and DHL-Sinotrans.
Hindenburg explained that EHang’s share price has surged, in part, due to “a recently granted aircraft design certification from the Chinese government, and a 1,300+ unit pre-order book, suggest[ing] imminent largescale revenue.”
Hindenburg found that: (1) “EHang’s much-touted, recently granted certification comes with numerous flight restrictions that it has failed to fully disclose to investors[;]” (2) “[t]he restrictions invalidate the bulk of its commercial use cases[;]” and (3) “EHang’s flagship aircraft would need a billion-dollar redesign and an entirely different class of certification to avoid the limitations.”
Hindenburg further found that “92+% of EHang’s claimed 1,300+ unit preorder book is based on ‘dead’ or ‘abandoned’ deals, failed partnerships, and newly-formed customer entities with no discernible operations.” As one example, Hindenburg observes that EHang’s largest deal is a 1,000 unit preorder from one of its pre-IPO investors (United Therapeutics) but that United is looking for aircraft with a 250 nautical range versus the 19-mile range offered by EHang. Hindenburg also quotes a United executive as saying “‘I don’t think anyone could say right now that they [EHang] have a certifiable configuration in terms of aircraft design.’”
In response, the price of EHang American Depositary Shares closed sharply lower on Nov. 7, 2023.
If you invested in EHang and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the EHang case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding EHang 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 EH@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
