According to the Complaint, Kandi Technologies Group, Inc. through its subsidiaries, designs, produces, manufactures, and distributes electric vehicles (EVs) products, EV parts, and off-road vehicles in the People’s Republic of China and internationally.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that certain areas in the Company’s previously issued financial statements for the years ended December 31, 2015 and 2014, and the first three quarters for the year ended December 31, 2016 required adjustment; (2) that in turn, the Company lacked effective controls over financial reporting; and (3) that as a result, Defendants’ statements about the Company’s business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On August 31, 2020, the Court issued an Order appointing Lead Plaintiff and Counsel. On September 25, the Court issued an Order transferring the case to the Southern District of New York. Lead Plaintiff filed an amended Complaint on January 7, 2021. Defendants filed a Motion to Dismiss the amended Complaint on March 9. On October 25, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint.