INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That Class Action Lawsuits Have Been Filed Against Ebix, Inc., EHang Holdings Limited, Renewable Energy Group, Inc., and XL Fleet Corp. and Encourages Investors to Contact the Firm

Kirby McInerney LLP
·8 min read

NEW YORK, April 12, 2021 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP reminds investors that class action lawsuits have been filed on behalf of stockholders of Ebix, Inc., EHang Holdings Limited, Renewable Energy Group, Inc., and XL Fleet Corp. Investors have until the deadlines below to apply to the Court to be appointed as lead plaintiff in the lawsuit. Additional information about each case can be found at the links provided below.

Ebix, Inc. (“Ebix” or the “Company”) (NASDAQ: EBIX)

Class Period: November 9, 2020 to February 19, 2021

Lead Plaintiff Deadline: April 23, 2021

On February 19, 2021, after the market closed, Ebix revealed that its independent auditor, RSM US LLP (“RSM”), resigned “as a result of being unable, despite repeated inquiries, to obtain sufficient appropriate audit evidence that would allow it to evaluate the business purpose of significant unusual transactions that occurred in the fourth quarter of 2020” related to the Company’s gift card business in India. RSM had also stated that there was a material weakness related to Ebix’s failure to design controls “over the gift or prepaid card revenue transaction cycle sufficient to prevent or detect a material misstatement.” In addition, Ebix and RSM disagreed over the accounting treatment of $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel in December 2020.

On this news, the Company’s share price declined by $20.24 per share, or approximately 40%, to close at $30.50 per share on February 22, 2021, on unusually heavy trading volume.

The lawsuit alleges that throughout the Class Period Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that there was insufficient audit evidence to determine the business purpose of certain significant unusual transactions in Ebix’s gift card business in India during the fourth quarter of 2020; (2) that there was a material weakness in the Company’s internal controls over the gift or prepaid revenue transaction cycle; and (3) that the Company’s independent auditor was reasonably likely to resign over disagreements with Ebix regarding $30 million that had been transferred into a commingled trust account of Ebix’s outside legal counsel; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For additional information on the Ebix lawsuit please visit this website.

EHang Holdings Limited (“EHang” or the “Company”) (NASDAQ: EH)

Class Period: December 9, 2019 to February 16, 2021

Lead Plaintiff Deadline: April 19, 2021

On February 16, 2021, analyst Wolfpack Research published a research report entitled “EHang: A Stock Promotion Destined to Crash and Burn.” Citing “extensive evidence” including “behind-the-scenes photographs, recorded phone calls, and videos of on-site visits to EH’s various facilities,” the report alleged that EHang is “an elaborate stock promotion, built on largely fabricated revenues based on sham sales contracts with a customer [Shanghai Kunxiang Intelligent Technology Co., Ltd.] who appears to us to be more interested in helping inflate the value of its investment in EH…than about buying its products.” Wolfpack Research also noted that “in just 14 months as a publicly traded company, EH’s PR team has put out 50 press releases…However, EH’s constant stream of press releases are easily proven untrue.” Finally, the report alleged that Wolfpack Research “obtained Chinese court records which show that EH’s ADRs may already be in serious jeopardy due to legal issues in China.”

On this news, the Company’s share price declined by $77.79 per share, or approximately 62.7%, to close at $46.30 per share on February 16, 2021, thereby injuring investors.

The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company’s purported regulatory approvals in Europe and North America for its EH216 were for use as a drone, and not for carrying passengers; (2) its relationship with its purported primary customer is a sham; (3) EHang has only collected on a fraction of its reported sales since its ADS began trading on NASDAQ in December 2019; (4) the Company’s manufacturing facilities were practically empty and lacked evidence of advanced manufacturing equipment or employees; and (5) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked reasonable basis at all relevant times.

For additional information on the EHang lawsuit please visit this website.

Renewable Energy Group, Inc. (“Renewable Energy” or the “Company”) (NASDAQ: REGI)

Class Period: May 3, 2018 to February 25, 2021

Lead Plaintiff Deadline: May 3, 2021

On February 25, 2021, after the market closed, Renewable Energy issued a press release announcing its fourth quarter and full year 2020 financial results. Therein, the Company revealed that it would restate “$38.2 million in cumulative revenue from January 2018 through September 30, 2020” because Renewable Energy was not the “proper claimant for certain BTC payments on biodiesel it sold between January 1, 2017 and September 30, 2020.” Renewable Energy further stated that it had reached an agreement with the Internal Revenue Service “on a $40.5 million assessment, excluding interest” to correct these claims. On this news, the Company’s share price declined by $8.17 per share, or approximately 9.5%, to close at $77.77 per share on February 26, 2021, on unusually heavy trading volume.

The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that due to failures in the diesel additive system, petroleum diesel was not periodically added to certain loads by the Company and was instead added by the Company’s customers; (2) that, as a result, Renewable Energy was not the proper claimant for certain BTC payments on biodiesel it sold between January 1, 2017 and September 30, 2020; (3) that, as a result, Renewable Energy’s revenue and net income were overstated for certain periods; (4) that there was a material weakness in the Company’s internal control over financial reporting related to the purchase and use of the petroleum diesel gallons when blending with biodiesel; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For additional information on the Renewable Energy lawsuit please visit this website.

XL Fleet Corp. (“XL” or the “Company”) (NYSE: XL)

Class Period: October 2, 2020 to March 2, 2021

Lead Plaintiff Deadline: May 7, 2021

On March 3, 2021, Muddy Waters Research published a report entitled “XL Fleet Corp. (NYSE: XL): More SPAC Trash,” alleging, among other things, that salespeople “were pressured to inflate their sales pipelines materially in order to mislead XL’s board and investors” and that “customer reorder rates are in reality quite low” due to “poor performance and regulatory issues.” Citing interviews with former employees, the report alleged that “at least 18 of 33 customers XL featured were inactive.” Muddy Waters also claimed that XL has “weak technology” and that “XL’s announcement of future class 7-8 upfits seems highly promotional” because the task is “too technologically complex for XL engineers to deliver on the promised timeline.” On this news, the Company’s stock price declined by $2.09 per share, or approximately 13%, to close at $13.86 per share on March 3, 2021, on unusually heavy trading volume. The share price continued to decline by $2.69 per share, or approximately 19.4%, over two consecutive trading days to close at $11.17 per share on March 5, 2021, on unusually heavy trading volume.

The lawsuit alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that XL Fleet’s salespeople were pressured to inflate their sales pipelines to boost the Company’s reported sales and backlog; (2) that at least 18 of the 33 customers that XL featured were inactive and had not placed an order since 2019; (3) that XL’s technology had been materially overstated and offered only 5% to 10% of fleet savings; (4) that XL lacks the supply chain and engineers to roll out new products on the announced timelines; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

For additional information on the XL lawsuit please visit this website.

About Kirby McInerney LLP:

Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq., (212) 371-6600
investigations@kmllp.com
www.kmllp.com