According to the Complaint, Kandi Technologies Group, Inc., through its subsidiaries, designs, develops, manufactures, and commercializes EV products and parts and off-road vehicles in China and internationally.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, the Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (i) Kandi artificially inflated its reported revenues through undisclosed related party transactions, or otherwise had relationships with key customers that indicated those customers did not have an arms-length relationship with Kandi; (ii) the majority of Kandi's sales in the past year had been to undisclosed related parties and/or parties with such a close relationship and history with Kandi that it cast doubt on the arms-length nature of their relationship; (iii) all the foregoing, once revealed, was foreseeably likely to cast doubt on the validity of Kandi's reported revenues and, in turn, have a foreseeable negative impact on the Company's reputation and valuation; and (iv) as a result, the Company's public statements were materially false and misleading at all relevant times.

On April 20, 2021, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on August 27. Defendants filed a Motion to Dismiss the amended Complaint on February 25, 2022. On September 29, the Court terminated Defendants' Motion to Dismiss in a minute Order.

Defendants filed a Supplemental Motion to Dismiss the amended Complaint on October 13, 2022. On March 29, 2024, the Court issued an Order granting Defendants' Motion to Dismiss. On March 30, the Clerk of Court entered Judgment in favor of the Defendants and closed the case.