Rudani v. Ideanomics, Inc. et al, Docket No. 1:19-cv-06741 (S.D.N.Y.)

In the Ideanomics securities case, Faruqi & Faruqi, LLP was appointed sole lead counsel. The lawsuit focuses on whether the Company and its executives violated federal securities laws by making materially false and misleading statements regarding Ideanomics’ business, operational and compliance policies.

Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) costs associated with building out Ideanomics’ U.S. infrastructure and hiring its new executive team were negatively impacting the Company’s bottom line performance; (2) as a result, Ideanomics was highly unlikely to meet its 2018 EBITDA guidance; (3) Ideanomics’ margins in its oil trading and consumer electronics businesses were too low for those businesses to remain viable; and (4) as a result, Ideanomics’ public statements were materially false and misleading at all relevant times.

On this news, Ideanomics’s share price fell from $3.26 per share on November 13, 2019 to a closing price of $1.67 on November 14, 2015—a $1.59 or a 48.77% drop.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.