GlobeNewswire Inc | Dec 14, 2020 06:09PM EST

December 14, 2020

NEW YORK, Dec. 14, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Kandi Technologies Group, Inc. (Kandi or the Company) (NASDAQ: KNDI) securities during the period from March 15, 2019 through November 27, 2020 (the Class Period). Investors have until February 9, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Kandi artificially inflated its reported revenues through undisclosed related party transactions, or otherwise had relationships with key customers that indicated those customers did not have an arms-length relationship with Kandi; (ii) the majority of Kandis sales in the past year had been to undisclosed related parties and/or parties with such a close relationship and history with Kandi that it cast doubt on the arms-length nature of their relationship; (iii) all the foregoing, once revealed, was foreseeably likely to cast doubt on the validity of Kandis reported revenues and, in turn, have a foreseeable negative impact on the Companys reputation and valuation; and (iv) as a result, the Companys public statements were materially false and misleading at all relevant times.

On November 30, 2020, Hindenburg Research (Hindenburg) published a report entitled Kandi: How This China-Based NASDAQ-Listed Company Used Fake Sales, EV Hype to Nab $160 Million From U.S. Investors. Citing extensive on-the-ground inspection at Kandis factories and customer locations in China, interviews with over a dozen former employees and business partners, and review of numerous litigation documents and international public records, the Hindenburg report asserted that almost 64% of Kandis sales over the year have been to undisclosed related parties. The report also alleged that [Kandi] has consistently booked revenue it cannot collect, a classic hallmark of fake revenue[.] Following the publication of the Hindenburg report, Kandis stock price fell $3.86 per share, or 28.34%, to close at $9.76 per share on November 30, 2020.

If you acquired Kandi securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.

Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation. The firms efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerneys website: www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Kirby McInerney LLPThomas W. Elrod, Esq., (212) 371-6600investigations@kmllp.comwww.kmllp.com