September 25, 2020 - The court dismissed claims against some of the individual defendants.
January 17, 2020 - A motion to dismiss was filed.
December 4, 2019 - An amended complaint was filed.
July 19, 2019 - An investor in shares of Ideanomics, Inc. (NASDAQ: IDEX) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Ideanomics, Inc. f/k/a Seven Stars Cloud Group, Inc. f/k/a Wecast Network Inc in connection with certain allegedly false and misleading statements made between May 15, 2017 and November 13, 2018.
New York based Ideanomics, Inc. operates as a financial technology and asset digitization services company. On November 14, 2018, Ideanomics, Inc. announced that the Company “intend[ed] to phase out [its] oil trading and consumer electronics businesses, with the intention to fully divest these assets in the near future.” Ideanomics also disclosed that it did “not anticipate meeting [its] EBITDA guidance of $35 million for fiscal year 2018,” citing “costs associated with building out [its] U.S. infrastructure and hiring [its] new executive team.”
Shares of Ideanomics, Inc. (NASDAQ: IDEX) declined from $5.75 per share in August 2018 to as low as $1.12 per share in December 2018.
According to the complaint the plaintiff alleges on behalf of purchasers of Ideanomics, Inc. (NASDAQ: IDEX) common shares between May 15, 2017 and November 13, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between May 15, 2017 and November 13, 2018, the defendants failed to disclose to investors that costs associated with building out Ideanomics’ U.S. infrastructure and hiring its new executive team were negatively impacting the Company’s bottom line performance, that as a result, Ideanomics was highly unlikely to meet its 2018 EBITDA guidance, that Ideanomics’ margins in its oil trading and consumer electronics businesses were too low for those businesses to remain viable, and that as a result, Ideanomics’ public statements were materially false and misleading at all relevant times.