NEW YORK - (NewMediaWire) - July 17, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Hebron Technology Co., Ltd. (“Hebron” or the “Company”) (NASDAQ:HEBT) of the August 10, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Hebron stock or options between April 24, 2020 and June 3, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/HEBT. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased Hebron securities between April 24, 2020 and June 3, 2020 (the “Class Period”). The case, Clynes v. Hebron Technology Co., Ltd. et al., No. 1:20-cv-04420 was filed on June 9, 2020 and has been assigned to Judge Paul A. Engelmayer.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that many of Hebron’s acquisitions, including Beijing Hengpu and Nami Holding (Cayman) Co., Ltd., involved undisclosed related parties; (2) that the Company’s disclosure controls regarding related party transactions was ineffective; and (3) 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.
On June 3, 2020, Siegfried Eggert, CEO of Grizzly Research, presented a report alleging that Hebron is an “insider enrichment scheme without economic basis,” citing questionable transactions including an undisclosed related party transaction for nearly $26 million.
On this news, the Company's stock price fell from $22.55 per share on June 2, 2020 to $14.29 per share on June 3, 2020: a $8.26 or 36.63% drop. The stock declined a further $2.51 the following day, closing at $11.78 per share on June 4, 2020.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Hebron’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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