Bitcoin Mining Manufacturer Canaan Sued for Allegedly Violating US Securities Law
Bitcoin mining hardware manufacturer Canaan has been hit with a securities lawsuit filed in a U.S. court.
According to a Mar. 4 filing at the United States District Court for the District of Oregon, Canaan is being sued by one of its investors for violating U.S. securities law. The lawsuit alleges the Chinese manufacturer misled investors about the company’s financial and operations status during its initial public offering (IPO) filing with the U.S. Securities and Exchange Commission (SEC) last November.
Plaintiff Phillippe Lemieux claims that Canaan misleadingly labeled a $150 million purchase agreement with Hangzhou Granshores Weichaeng Technology as a “strategic cooperation,” despite the company’s chairman owning 9.7% of Canaan shares.
The complaint also accuses Canaan of removing distributors from its website prior to the IPO and misrepresenting clients who are not involved in the industry of bitcoin mining.
Canaan, which is down nearly 50 percent from its initial listing price of $9 last November, briefly reached $8 on Feb. 12 before plummeting again.
Rosen Law Firm, representing Lemieux in the case, published an announcement on Mar. 3 asking similarly affected Canaan investors to join the class action.
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