"Asking shareholders if they want to start a class action" is not illegal
What it can do is scare poorly dillgenced retail shareholders into believing something fraudulent happened in the company
Oddly the same thing happened on other occasions with Kerrisdale involved in a "hit piece" and the same law firms - odd coincidence hey?
Most of us can put 2+2 together son
Kerrisdale will be dealing with the SEC on this one as WELL (see past history of their issues) given they (according to the company/ nak) made false claims and were clearly shorting the stock
The COMBINATION of those two things is actually illegal