March 31, 2021 - An investor in shares of SOS Limited (NYSE: SOS) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by SOS Limited in connection with certain allegedly false and misleading statements made between July 22, 2020 and February 25, 2021.
China based SOS Limited, a technology company, provides marketing data, technology, and solutions for emergency rescue services to corporate and individual members. On February 26, 2021, Hindenburg Research and Culper Research published reports regarding SOS Limited, alleging that the Company was a "pump and dump" scheme that used fake addresses and doctored photos of crypto miners to create an illusion of success. The reports pointed out that SOS Limited lists a hotel room as the company's headquarters and that SOS Limited purportedly bought mining rigs from a fake shell company. Moreover, the reports noted that the photographed SOS "miners" weren't the A10 Pros the company claimed to own but were actually Avalon's A1066 miners. Hindenburg went even further and found the original images from SOS's site belonged to a rival RHY.
Shares of SOS Limited (NYSE: SOS) declined from $15.88 per share on February 17, 2021, to as low as $4.21 per share on February 26, 2021.
According to the complaint the plaintiff alleges on behalf of purchasers of SOS Limited (NYSE: SOS) common shares between July 22, 2020 and February 25, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between July 22, 2020 and February 25, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that SOS had misrepresented the true nature, location, and/or existence of at least one of the principal executive offices listed in its SEC filings, that HY and FXK were either undisclosed related parties and/or entities fabricated by the Company, that the Company had misrepresented the type and/or existence of the mining rigs that it claimed to have purchased, and that as a result, the Company's public statements were materially false and misleading at all relevant times.