07/20/22 | $5 Million Settlement with Defendants
Hagens Berman is pleased to announce a settlement with Defendants totaling $5 million. The settlement provides significant relief to purchasers of American Depository Shares (ADSs) of SOS Limited from July 22, 2020 through February 26, 2021, both dates inclusive, resolving allegations that Defendants misled investors by promoting a fraudulent stock promotion scheme that has concealed related party transactions, and has misrepresented the type and/or existence of bitcoin mining rigs SOS claimed to have purchased earlier this year.

The Court preliminarily approved the settlement on July 20, 2022. The deadline for class members to submit a claim was November 8, 2022. The final fairness hearing will be held on November 29, 2022. For more details on the settlement, visit StrategicClaims.net/SOS.

Case Status
Active
Settlement Amount
$5 Million
Case Caption
Beltran v. SOS Limited, et al.
Position
Co-Lead Counsel
Practice Areas
Court
U.S. District Court for the District of New Jersey
Judge Assigned
Hon. Robert B. Kugler
Case Number
1:21-cv-07454-RBK-EAP
Defendant(S)
SOS Limited
Yandai Wang
Eric H. Yan
Stock Symbol
NYSE: SOS
File Date
Class Period
-
Lead Plaintiff Deadline
Phone

The complaint centers on SOS’s purported recent entry into the bitcoin mining business. For example, on Jan. 21, 2021, SOS claimed to have purchased over 15,000 mining rigs from HY International Group New York (“HY”) for $20 M, and a month later, claimed that 5,000 mining rigs had already gone live.

The complaint alleges that, in truth, SOS is a fraudulent stock promotion scheme that has concealed related party transactions, and has misrepresented the type and/or existence of bitcoin mining rigs SOS claimed to have purchased earlier this year.

Investors allegedly began to learn the truth on Feb. 26, 2021, when Hindenburg Research and Culper Research released scathing commentary on SOS, claiming that SOS was an intricate “pump and dump” scheme that used fake addresses and doctored photos of crypto miners to create an illusion of success.  The analysts pointed out that the company’s SEC filings, for instance, listed a hotel room as the firm’s headquarters. The analysts also questioned whether SOS had actually purchased the claimed mining rigs, as HY appears to be a fake shell company.  Most damaging, the analysts alleged that the photos SOS had published of their “mining rigs” were phony.  Culper noted that the photographed SOS “miners” weren’t the A10 Pros the company claimed to own. Instead, they were pictures of Avalon’s A1066 miners. Hindenburg further found the original images from SOS’s site belonged to a legitimate rival, RHY.

After the class period, on Mar. 9, 2021 SOS admitted that rig seller HY was formed to preserve the “confidentiality” of a Chinese seller of used mining rigs. 

Then, on Mar. 12, 2021 Culper published a follow-up report, claiming that SOS board member Wenbin Wu is directly linked to HY and arguing that SOS’s supposed desire for “‘confidentiality’” is in fact a thinly-veiled excuse for fraud via an undisclosed related party transaction.”

Case Timeline
Title
Court Approves Lead Plaintiff's Motion for Preliminary Approval of Class Action Settlement
Description

U.S. District Court Judge Robert B. Kugler approved a $5 million settlement.

Hagens Berman will post important information on this page, such as when notices will be mailed and date of final approval hearing.

Date
Title
Motion for Preliminary Approval of Settlement is Filed
Case Status
Date
Title
Hagens Berman is Appointed Co-Lead Counsel
Case Status
Date

CASE TIMELINE

Court Approves Lead Plaintiff's Motion for Preliminary Approval of Class Action Settlement

U.S. District Court Judge Robert B. Kugler approved a $5 million settlement.

Hagens Berman will post important information on this page, such as when notices will be mailed and date of final approval hearing.

Motion for Preliminary Approval of Settlement is Filed

Hagens Berman is Appointed Co-Lead Counsel

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