Faruqi & Faruqi Defeats Motion To Dismiss In Investor Class Action Against Ideanomics

On September 25, 2020, Judge George B. Daniels of the Southern District of New York denied Defendant Ideanomics, Inc.’s (“Ideanomics”) motion to dismiss Lead Plaintiff’s amended securities class action complaint (the “Complaint”).  In its order, the Court held that the Lead Plaintiff’s Complaint stated valid claims for securities fraud against Ideanomics and certain of its officers and directors (the “Defendants”).  See Order at 9-13.  

In so doing, the Court explained that Lead Plaintiff’s Complaint sufficiently pleaded that the Defendants made false and misleading statements that omitted material facts that “if known to a reasonable investor, would likely influence his view of the Company’s [2017] revenue guidance and his decision as to whether to purchase or sell Ideanomics’ securities.”  Id. at 10.  The Court likewise explained that Lead Plaintiff sufficiently pleaded Defendants knew (or should have known) about these omitted facts when making the misstatements at issue.  Id. at 12.  Notably, the Court also declined Ideanomics’ request to dismiss Lead Plaintiff’s allegations that Ideanomics made false and misleading statements concerning its crude oil revenues and its integration of blockchain.  Id. at 11.  

A copy of Judge Daniels’ September 25, 2020 Order is attached.