Ideanomics Inc (IDEX)

[jgrabar]

$IDEX shareholders who have held since shares since at least February 2, 2017, have filed a shareholder derivative suit seeking better corporate governance and restitution to the company from its officers and directors for their alleged false statements regarding the company's integrations of artificial intelligence and blockchain technology into its consumer electronics business and crude oil business.

Long term shareholders can demand better governance and restitution to the company, as well as a court approved incentive award where appropriate at no cost to them whatsoever.

To learn more, contact [e-mail] - www.grabarlaw.com

According to the complaint, while Ideanomics touted its acquisitions, saying Ideanomics would reach $280 million to $300 million in revenues for the 2017 fiscal year, its executives hid the companies' low revenue and combined losses from just a quarter before the acquisitions.

Ideanomics ended up being "nowhere near its issued revenue guidance" of $280 million to $300 million for the fiscal year ended Dec. 31, 2017, according to the complaint.

It announced in January 2018, that it already generated $170 million for the fourth quarter from its crude oil business alone, when those revenues were actually only $19 million, according to the complaint.

In February 2018, Ideanomics announced it didn't expect to exceed $144 million in revenues for the entire fiscal year that ended Dec. 31, 2017, and announced the company had dismissed its earlier CEO.

The company's stock price fell 39.3%, from $2.80 per share to close at $1.70 per share on Feb. 23, 2018, according to the complaint.

Several more disclosures — generating far less revenue than anticipated, admitting it wasn't integrating blockchain or AI-based logistics solutions — resulted in stock prices dropping three more times, according to the complaint.

Beginning in March 2020, the company touted a 1 million square-foot electric vehicle expo center in Qingdao, Shandong Province, according to the complaint.

Ideanomics admitted in June that the Qingdao electric vehicle expo was supposed to reach 1 million square feet but was currently in the first phase of its launch and only occupied 215,000 square feet.

The stock price dropped a fifth and final time, during the two relevant periods, between Feb. 1, 2017, and Nov. 13, 2018, and March 20, 2020, through the present, according to the complaint.


https://www.law360.com/articles/1291436/ideanomics-investors-sue-over-shifty-biz-stock-drops