On February 16, 2021, analyst Wolfpack Research issued a scathing report concerning Ehang entitled: “EHang: A Stock Promotion Destined to Crash and Burn.” In this report, Wolfpack Research called EHang “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts . . . .” The report continued that “EH has perpetuated its story with a collection of lies about its products, manufacturing, revenues, partnerships, and potential regulatory approval of its purported main business.” Wolfpack Research asserted that it “gathered extensive evidence including behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH’s various facilities.” The market was stunned on this news, with shares plunging nearly 63% in one day, wiping out billions of dollars in market capitalization.
The lawsuit was filed in the U.S. District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY 10007. The case is captioned Amberber v. EHang Holdings Limited, et al., No. 1:21-cv-01392 (S.D.N.Y.), and has been assigned to the Honorable George B. Daniels. The class period is between December 12, 2019 and February 16, 2021, inclusive.