Kandi Technologies Group, Inc. (KNDI) Accused of Misleading Shareholders
Throughout the relevant period, Kandi attested to the accuracy of its financial reporting, the disclosure of all material changes to its financial reporting, and the disclosure of all fraud. Then, on November 14, 2016, Kandi announced the abrupt resignation of its CFO. Finally on March 13, 2017, contrary to Kandi’s assurances, the Company filed a form 8-K with the SEC revealing that its previously issued financial statements for 2014, 2015 and the first three quarters of 2016 could no longer be relied upon and would need to be restated due to the identification of certain areas in the statements that required adjustment. Kandi also acknowledged that the readjustment could reveal deficiencies in its internal controls over financial reporting that may indicate material weaknesses and alter previous conclusions regarding effectiveness. On this news, the stock declined 6%, closing at $4.05 per share.