SAN FRANCISCO, April 12, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges SOS Limited (NYSE: SOS) investors to submit their losses now.
SOS Limited (SOS) Securities Fraud Class Action:
The complaint centers on SOS’s purported recent entry into the bitcoin mining business. For example, on Jan. 21, 2021, SOS claimed to have purchased over 15,000 mining rigs from HY International Group New York (“HY”) for $20 M, and a month later, claimed that 5,000 mining rigs had already gone live.
The complaint alleges that, in truth, SOS is a fraudulent stock promotion scheme that has concealed related party transactions, and has misrepresented the type and/or existence of bitcoin mining rigs SOS claimed to have purchased earlier this year.
Investors allegedly began to learn the truth on Feb. 26, 2021, when Hindenburg Research and Culper Research released scathing commentary on SOS, claiming that SOS was an intricate “pump and dump” scheme that used fake addresses and doctored photos of crypto miners to create an illusion of success. The analysts pointed out that the company’s SEC filings, for instance, listed a hotel room as the firm’s headquarters. The analysts also questioned whether SOS had actually purchased the claimed mining rigs, as HY appears to be a fake shell company. Most damaging, the analysts alleged that the photos SOS had published of their “mining rigs” were phony. Culper noted that the photographed SOS “miners” weren’t the A10 Pros the company claimed to own. Instead, they were pictures of Avalon’s A1066 miners. Hindenburg further found the original images from SOS’s site belonged to a legitimate rival, RHY.
After the class period, on Mar. 9, 2021 SOS admitted that rig seller HY was formed to preserve the “confidentiality” of a Chinese seller of used mining rigs.
Then, on Mar. 12, 2021 Culper published a follow-up report, claiming that SOS board member Wenbin Wu is directly linked to HY and arguing that SOS’s supposed desire for “‘confidentiality’” is in fact a thinly-veiled excuse for fraud via an undisclosed related party transaction.”
“We’re focused on investors’ losses and proving SOS is a false promotion scheme,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a SOS investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding SOS should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SOS@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895