PHILADELPHIA, Dec. 22, 2020 (GLOBE NEWSWIRE) — Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of ACM Research Inc. (“ACM” or the “Company”) (NASDAQ: ACMR) to determine whether ACM engaged in securities fraud or other unlawful business practices.
INVESTORS WHO PURCHASED, OR OTHERWISE ACQUIRED, THE SECURITIES OF ACM RESEARCH BETWEEN MARCH 6, 2019 AND OCTOBER 7, 2020, BOTH DATES INCLUSIVE (THE “CLASS PERIOD”), AND SUFFERED LOSSES GREATER THAN $100,000 ARE ENCOURAGED TO COMPLETE KEHOE LAW FIRM’S SECURITIES CLASS ACTION QUESTIONNAIRE OR CONTACT KEVIN CAULEY, DIRECTOR, BUSINESS DEVELOPMENT, (215) 792-6676, EXT. 802, KCAULEY@KEHOELAWFIRM.COM, INFO@KEHOELAWFIRM.COM, SECURITIES@KEHOELAWFIRM.COM, TO DISCUSS THE SECURITIES CLASS ACTION INVESTIGATION OR POTENTIAL LEGAL CLAIMS.
A class action lawsuit has been filed seeking to recover damages on behalf of investors who purchased, or otherwise acquired, ACM securities during the Class Period and suffered losses.
According to the class action complaint, throughout the Class Period, the ACM Defendants made materially false and misleading statements, and failed to disclose material adverse facts about the Company’s business, operational, and compliance policies. The ACM Defendants, allegedly, made false and/or misleading statements and failed to disclose to investors that (i) the Company’s revenue and profits had been diverted to undisclosed related parties; (ii) accordingly, the Company had materially overstated its revenues and profits; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On October 8, 2020, J Capital Research reported, among other things, that “ACMR reports industry-beating gross margins of 47%. [J Capital Research] believe[s] the real gross margins are half that at best. That would wipe out the company’s net profit.” J Capital Research also reported that it “. . . estimate[s] that revenue is overstated by 15-20%[,]” and that it has “. . . evidence that undisclosed related parties are diverting revenue and profit from the company[.]”
Additionally, J Capital Research reported that the “[k]ey means by which ACMR tunnels over-reported profit out of the company may be through about $20 mln in overstated inventory costs and through cash that is inflated or just compromised. We think [at] least $11 mln in warranty and service costs are understated.”
On this news, ACM’s stock price dropped $1.09 per share to close at $70.79, thereby injuring investors.
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors from securities fraud, breaches of fiduciary duties, and corporate misconduct. Combined, the partners at Kehoe Law Firm have served as Lead Counsel or Co-Lead Counsel in cases that have recovered more than $10 billion on behalf of institutional and individual investors.
This press release may constitute attorney advertising.
- Heat Pump Market Projected to Hit USD 118.4 Billion at a 11.37% CAGR by 2030 – Report by Market Research Future (MRFR) - December 2, 2022
- Lottery.com, Inc. subsidiary Sports.com in historic partnership with Saudi Motorsport Company - December 2, 2022
- Ayr Wellness’ Three New Jersey Retail Locations Now Operating as AYR - December 2, 2022