On June 25, 2020, analyst Hindenburg Research issued a series of tweets announcing Hindenburg’s conclusion that Ideanomics, Inc.(NASDAQ: IDEX) “is an egregious & obvious fraud.” Hindenburg asserted that it found evidence that Ideanomics “doctored photos in its PR to suggest it owns/operates” a facility, and that this “strikes us as a clear effort by the company to manipulate the photographs in order to drive its stock price up.” Hindenburg further asserted that it had an investigator who visited Ideanomics“ supposed MEG sales center,” and that the “facility is actually operated by almost 100 sales groups,” none of whom had “heard of [Ideanomics] or MEG.” Furthermore, Hindenburg stated that it had its “investigator call five of[Ideanomics’] purported customers that are helping drive its supposed [electric vehicle] business,” and that “[n]one of them were aware of Ideanomics and none were able to confirm doing business with” Ideanomics.
Also on June 25, 2020, analyst J Capital Research issued a report on Ideanomics entitled “Champion of Promotes.” J Capital 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 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.’”
On this announcement, Ideanomics shares fell approximately 21% in one day, down to $2.44 per share from their June 24, 2020 close of $3.09 per share. Shares continued to plummet on June 26, 2020, closing at just $1.46 per share, a drop of approximately 53%.
Investors who have lost money on their IDEX shares between March 30, 2020 and June 25, 2020 may be able to recover some of those losses, and should contact us using the form below.