Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Lawsuit Filed Against Ideanomics, Inc. - IDEX

RADNOR, Pa., Aug. 17, 2020

Investors who purchased or otherwise acquired Ideanomics common stock during the Class Period may, no later than August 27, 2020, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation please click https://www.ktmc.com/ideanomics-inc-class-action?utm_source=PR&utm_medium=link&utm_campaign=ideanomics.

According to the complaint, Ideanomics is a global company focused on facilitating the adoption of commercial electric vehicles ("EV") and developing next generation financial services and Fintech products.

The Class Period commences on March 20, 2020, when Ideanomics issued a press release in which it announced "that the Qingdao-MEG Sales Center, branded as Mobile Energy Group Center, is scheduled to start sales operations by May 1."  Throughout the Class Period, Ideanomics continued to laud its EV expo center, claiming the MEG Center is "the largest auto trading market in Qingdao," China.  However, the truth was eventually revealed.

According to the complaint, on June 25, 2020, analyst Hindenburg Research issued a series of tweets in which it called Ideanomics "an egregious & obvious fraud." Hindenburg asserted that it found evidence that Ideanomics had doctored photos for use in its press releases to suggest that it owns or operates a vehicle sales center in Qingdao, China, when it in fact does not.  Hindenburg further asserted that it had an investigator go to Ideanomics' purported MEG Center in Qingdao, China, where the investigator was unable to find any trace of Ideanomics or its purported MEG Center.  Also, on June 25, 2020, analyst J Capital Research issued a report on Ideanomics entitled "Champion of Promotes". J Capital Research wrote, in part, that "Ideanomics . . . is a zero. The company changes its name and promotional story so frequently that it's hard to keep up. One thing remains a constant, despite all the press releases, buzzwords and hype: shareholders get wiped out." J Capital Research continued, in a tweet, that "[w]e called all the 'buyers' named in [Ideanomics'] press releases this month. Not a single one had made a purchase. One of them thanked us for alerting them to 'fake news.'"  Following this news, Ideanomics' stock price fell from its June 24, 2020 close of $3.09 to a June 25, 2020 close of $2.44 per share, a one day drop of $0.65 or approximately 21%.

Then, on June 26, 2020, Ideanomics issued a press release in which it sought to "clarify the status" of its purported EV hub in Qingdao, China. In this release, Ideanomics walked back certain of its prior statements regarding the MEG Center in Qingdao, stating that it was launching three phases of its MEG Center that will eventually total one million square feet. The first phase, according to Ideanomics, occupies only 215,000 square feet.  Following this news, the stock price continued to fall on June 26, 2020, dropping to a close of $1.46 per share. This represents a two day drop of approximately 53%.