EHang Holdings Limited (EH) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired EHang Holdings Limited (NASDAQ: EH) securities between January 20, 2022 and November 6, 2023. EHang describes itself as an “autonomous aerial vehicle technology company.”
According to the complaint, during the class period, defendants failed to disclose that (1) EHang has continued to state that it was partnering with United Therapeutics, DHL, and Vodafone, among others, even though a former EHang employee has noted that United Therapeutics, DHL, and Vodafone have abandoned their respective deals with EHang and (2) EHang omitted that other entities that had placed pre-orders for its aircraft, such as Prestige Aviation and Shenzhen Boling Holding Group, did not engage in regular business in the aviation sector and are otherwise almost certainly not in a financial position to be able to afford their orders.
Plaintiff alleges that on November 7, 2023, Hindenburg Research released a report entitled “Ehang: Hollow Order Book And Fake Sales Make This China-Based eVTOL Company Last in Line For Takeoff” (the “Hindenburg Report”). The Hindenburg Report made a number of allegations regarding the Company’s business, operations, and prospects, and raised issues with EHang’s purported deals with entities called United Therapeutics, Prestige Aviation, AirX, Shenzhen Boling Holdings Group, and DHL Sinotrans, among other things. On this news, the price of EHang ADSs declined by $1.90 per ADS, or 12.70%, to close at $13.06 on November 7, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against EHang Holdings Limited. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by February 2, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
