An investigation on behalf of investors of ACM Research, Inc. (NASDAQ: ACMR) shares over potential securities laws violations by ACM Research, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of ACM Research, Inc. (NASDAQ: ACMR) concerning whether a series of statements by ACM Research, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Fremont, CA based ACM Research, Inc., together with its subsidiaries, develops, manufactures, and sells single-wafer wet cleaning equipment for enhancing the manufacturing process and yield for integrated chips worldwide
ACM Research, Inc. reported that its annual Total Revenue rose from $74.64 million in 2018 to $107.52 million in 2019, and that its EBIT increased from $7.87 million in 2018 to $19.68 million in 2019.
On October 8, 2020, analyst J Capital Research ('J Capital') published a report concerning ACM Research, Inc., in which J Capital concluded that ACM Research, Inc. 'is a fraud, over-reporting both revenue and profit.' The report cited, among other things, J Capital's visits to 'sites in China, Korea, and California' and 'more than 40 interviews.' J Capital asserted that '[w]hat real profit the company has is apparently being siphoned off to related parties.' The J Capital report concluded that ACM's revenue was overstated by 15-20% and claimed to have 'evidence that undisclosed related parties are diverting revenue and profit from the company.'
Shares of ACM Research, Inc. (NASDAQ: ACMR) declined from $75.18 per share on October 7, 2020 to $66.23 per share on October 8, 2020.