This case was last updated from PACER on 06/07/2021 at 08:54:48 (UTC).

Zaker v. Ebang International Holdings Inc. et al

Case Summary

On April 8, 2021, Tommie Zaker (“Plaintiff”), represented by Gregory Bradley Linkh of Glancy Prongay & Murray LLP individually and on behalf of all others similarly situated, filed a civil action complaint against Ebang International Holdings Inc., (“Ebang” or “Company”) and Defendants Ho and Chu (“Individual Defendants”) (collectively, “Defendants”) seeking compensatory damages against alleged wrongful conduct in violation of federal securities laws. This case was filed in the U.S. District Court for the Southern District of New York with Judge Katherine Polk Failla presiding. 

 

The Plaintiff brings this action as a class action pursuant to Federal Rule of Civil Procedure 23(a) and (b)(3) on behalf of a class, consisting of all persons and entities that purchased or otherwise acquired Ebang securities between June 26, 2020 and April 5, 2021, inclusive, and who were damaged thereby (the “Class”).

 

In its complaint, the Plaintiff has alleged that “On April 6, 2021, before the market opened, Hindenburg Research published a report alleging, among other things, that Ebang is directing proceeds from its IPO last year into a “series of opaque deals with insiders and questionable counterparties.” According to the report, Ebang raised $21 million in November 2020, claiming the proceeds would go “primarily for development,” and that instead the funds were directed to repay related-party loans to a relative of the Ebang’s Chief Executive Officer, Dong Hu. On this news, the Company’s share price fell $0.12, or 2.17%, to close at $5.41 per share on April 7, 2021.” Furthermore, “As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s shares, Plaintiff and other Class members have suffered significant losses and damages.”

 

The Plaintiff has further alleged that “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, Defendants failed to disclose to investors: (1) that the proceeds from Ebang’s public offerings had been directed to an low yield, long term bonds to an underwriter and to related parties rather than used to develop the Company’s operations; (2) that Ebang’s sales were declining and the Company had inflated reported sales, including through the sale of defective units; (3) that Ebang’s attempts to go public in Hong Kong had failed due to allegations of embezzling investor funds and inflated sales figures; (4) that Ebang’s purported cryptocurrency exchange was merely the purchase of an out-of-the-box crypto exchange; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.”

 

There are two claims for relief laid down by the Plaintiff. The first claim is against all Defendants for alleged violations of Section 10(b) of The Exchange Act and Rule 10b-5 promulgated thereunder. As a result of the dissemination of the false & misleading information and/or failure to disclose material facts, the market price of Ebang’s shares was artificially inflated, and relying directly or indirectly on the statements made by Defendants. The second claim is against individual Defendants for the alleged violation of Section 20(a) of the Exchange Act. Individual Defendants had the power to influence and control, directly or indirectly, the decision-making of the Company, including the content and dissemination of the various statements which are false and misleading.

 

In the prayer for relief, the Plaintiff requested the Court to determine the action as a proper class action and award compensatory damages in favor of Plaintiff and the other Class members, along with other costs and such other equitable relief as the Court may deem just and proper.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-03060

  • Filing Date:

    04/08/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    New York Southern District

Judge Details

Presiding Judge

Katherine Polk Failla

 

Party Details

Plaintiff

Tommie Zaker

Defendants

Ebang International Holdings Inc.

Lei Chen

Dong Hu

Attorney/Law Firm Details

Plaintiff Attorney

Gregory Bradley Linkh

Attorney at Glancy Prongay & Murray LLP

77 Water Street, 7Th Floor

New York, NY 10005

 

Court Documents

#7

(#7) ORDER: Plaintiff's counsel published the required notice on April 8, 2021. Members of the purported class therefore have until June 7, 2021 to move the Court to serve as lead plaintiffs. Opposition to any motion for appointment of lead plaintiff shall be served and filed by July 7, 2021. IT IS FURTHER ORDERED that a conference shall be held at 10:00 a.m. on July 21, 2021, in Courtroom 618, Thurgood Marshall United States Courthouse, 40 Foley Square, New York, New York to consider any motions for appointment of lead plaintiff and lead counsel and for consolidation. IT IS FURTHER ORDERED that the named plaintiffs shall promptly serve a copy of this Order on each of the defendants., (Motions due by 6/7/2021. Responses due by 7/7/2021. Motion Conference set for 7/21/2021 at 10:00 AM in Courtroom 618, 40 Centre Street, New York, NY 10007 before Judge Katherine Polk Failla.) (Signed by Judge Katherine Polk Failla on 4/19/2021) (nb) Modified on 4/19/2021 (nb). (Main Document 7 replaced on 4/22/2021) (tn). Modified on 4/22/2021 (tn). (Entered: 04/19/2021)

#6

(#6) NOTICE of Response to the Court's Order Regarding Notice to Putative Class Members re: #5 Order. Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/16/2021)

#5

(#5) ORDER: It is hereby ORDERED that no later than April 29, 2021, Plaintiffs shall advise the Court in writing of the date and manner in which they published this notice. (Signed by Judge Katherine Polk Failla on 4/12/2021) (nb) (Entered: 04/12/2021)

#4

(#4) ELECTRONIC SUMMONS ISSUED as to Lei Chen, Ebang International Holdings Inc., Dong Hu..(dnh) (Entered: 04/09/2021)

#3

(#3) REQUEST FOR ISSUANCE OF SUMMONS as to EBANG INTERNATIONAL HOLDINGS INC., DONG HU, and LEI CHEN, re: #1 Complaint. Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/08/2021)

#2

(#2) CIVIL COVER SHEET filed..(Linkh, Gregory) (Entered: 04/08/2021)

#1

(#1) COMPLAINT against Lei Chen, Ebang International Holdings Inc., Dong Hu. (Filing Fee $ 402.00, Receipt Number ANYSDC-24372692)Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/08/2021)

 

Docket Entries

  • 04/22/2021
  • DocketSet/Reset Deadlines: Motion Hearing set for 7/21/2021 at 10:00 AM before Judge Katherine Polk Failla. (tn) (Entered: 04/22/2021)

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  • 04/18/2021
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  • Docket(#7) ORDER: Plaintiff's counsel published the required notice on April 8, 2021. Members of the purported class therefore have until June 7, 2021 to move the Court to serve as lead plaintiffs. Opposition to any motion for appointment of lead plaintiff shall be served and filed by July 7, 2021. IT IS FURTHER ORDERED that a conference shall be held at 10:00 a.m. on July 21, 2021, in Courtroom 618, Thurgood Marshall United States Courthouse, 40 Foley Square, New York, New York to consider any motions for appointment of lead plaintiff and lead counsel and for consolidation. IT IS FURTHER ORDERED that the named plaintiffs shall promptly serve a copy of this Order on each of the defendants., (Motions due by 6/7/2021. Responses due by 7/7/2021. Motion Conference set for 7/21/2021 at 10:00 AM in Courtroom 618, 40 Centre Street, New York, NY 10007 before Judge Katherine Polk Failla.) (Signed by Judge Katherine Polk Failla on 4/19/2021) (nb) Modified on 4/19/2021 (nb). (Main Document 7 replaced on 4/22/2021) (tn). Modified on 4/22/2021 (tn). (Entered: 04/19/2021)

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  • 04/16/2021
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  • Docket(#6) NOTICE of Response to the Court's Order Regarding Notice to Putative Class Members re: #5 Order. Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/16/2021)

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  • 04/12/2021
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  • Docket(#5) ORDER: It is hereby ORDERED that no later than April 29, 2021, Plaintiffs shall advise the Court in writing of the date and manner in which they published this notice. (Signed by Judge Katherine Polk Failla on 4/12/2021) (nb) (Entered: 04/12/2021)

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  • 04/09/2021
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  • Docket(#4) ELECTRONIC SUMMONS ISSUED as to Lei Chen, Ebang International Holdings Inc., Dong Hu..(dnh) (Entered: 04/09/2021)

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  • 04/09/2021
  • DocketCase Designated ECF. (dnh) (Entered: 04/09/2021)

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  • 04/09/2021
  • DocketMagistrate Judge Barbara C. Moses is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (dnh) (Entered: 04/09/2021)

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  • 04/09/2021
  • DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Katherine Polk Failla. Please download and review the Individual Practices of the assigned District Judge, located at #https://nysd.uscourts.gov/judges/district-judges. Attorneys are responsible for providing courtesy copies to judges where their Individual Practices require such. Please download and review the ECF Rules and Instructions, located at #https://nysd.uscourts.gov/rules/ecf-related-instructions..(dnh) (Entered: 04/09/2021)

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  • 04/09/2021
  • Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Gregory Bradley Linkh. The party information for the following party/parties has been modified: Tommie Zaker. The information for the party/parties has been modified for the following reason/reasons: party text was omitted. (dnh) (Entered: 04/09/2021)

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  • 04/08/2021
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to EBANG INTERNATIONAL HOLDINGS INC., DONG HU, and LEI CHEN, re: #1 Complaint. Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/08/2021)

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  • 04/08/2021
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  • Docket(#2) CIVIL COVER SHEET filed..(Linkh, Gregory) (Entered: 04/08/2021)

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  • 04/08/2021
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  • Docket(#1) COMPLAINT against Lei Chen, Ebang International Holdings Inc., Dong Hu. (Filing Fee $ 402.00, Receipt Number ANYSDC-24372692)Document filed by Tommie Zaker..(Linkh, Gregory) (Entered: 04/08/2021)

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