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LOS ANGELES, Jan. 04, 2021 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of ACM Research, Inc. ("ACM" or "the Company") (NASDAQ: ACMR) investors that acquired securities between March 6, 2019 and October 7, 2020.
J Capital Research issued a report on October 8, 2020 alleging, among other things, that ACM is “over-reporting both revenue and profit.” Citing site visits as well as more than 40 interviews, it was alleged in the report that “[w]hat real profit the company has is apparently being siphoned off to related parties.” The report also concluded revenue is overstated by 15-20% and claimed to have “evidence that undisclosed related parties are diverting revenue and profit from the company.”
ACM’s stock price fell $1.09 on this news, or 1.52%, to close at $70.79 per share on October 8, 2020, thereby injuring investors.
It is alleged in the complaint filed in this class action that throughout the Class Period, ACM made materially misleading and/or false statements, as well as failed to disclose material adverse facts about the ACM’s business, operations, and prospects. Specifically, ACM failed to disclose to investors that: (1) revenue and profits had been diverted to undisclosed related parties; (2) ACM’s revenues and profits had been materially overstated; and (3) ACM’s positive statements about its business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times, as a result.
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The Portnoy Law Firm represents investors in pursuing claims arising from corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.