December 21, 2020 - An investor in shares of ACM Research, Inc. (NASDAQ: ACMR) filed a lawsuit in the U.S. District Court for the Northern District of California over alleged violations of Federal Securities Laws by ACM Research, Inc. in connection with certain allegedly false and misleading statements made between March 6, 2019 and October 7, 2020.
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.
According to the complaint the plaintiff alleges on behalf of purchasers of ACM Research, Inc. (NASDAQ: ACMR) common shares between March 6, 2019 and October 7, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 6, 2019 and October 7, 2020, the Defendants made false and/or misleading statements and failed to disclose to investors that the Company's revenue and profits had been diverted to undisclosed related parties, that accordingly, the Company had materially overstated its revenues and profits, and that as a result, the Company's public statements were materially false and misleading at all relevant times.