On April 8,media reported that the U.S. law firm Holzer and Holzer were investigating Aichi to see if it complied with federal securities laws. According tomedia reports, short-sing agency Wolfpack Research published a report on its website, “The Netflix of China?” According to Good Luckin, Aichi had been cheating long before the 2018 IPO and had been doing so ever since.
The report says they estimate that Aichi has inflated its 2019 revenue by about 27-44 percent and its user base by about 42 to 60 percent. In addition, the report states that fraud was concealed from auditors and investors “by burning false cash that does not exist”.
Meanwhile, another short-selling company, Muddy Waters, has been shorting Edge after Wolfpack Research released the report.
Aichi responded that its references and conclusions were grossly false and did not correspond to the actual situation. Ai qiyi said that as a responsible public company, all financial and operational data disclosed by the Company is true, in accordance with SEC requirements, the Company strongly denies all false allegations, and reserves the right to sue the law.
Aichi’s shares closed up 3.22 per cent at $17.3 00 after the US agency was shorted.
Holzer and Holzer is a law firm based in Atlanta, Georgia, USA, dedicated to representing shareholders and investors throughout the United States, including shareholder class actions and derivative litigation. Since its inception in 2000, holzer and Holzer have recovered hundreds of millions of dollars in losses for shareholders who have been victims of fraud and other corporate misconduct.