Encouragement for EHang

Hagens Berman, a global plaintiffs' rights law firm, is urging investors who suffered losses in EHang Holdings Limited (NASDAQ: EH) to submit their losses. The firm is investigating the credibility of EHang's statements regarding the prospects of its electric vertical take-off and landing aircraft. A scathing report by Hindenburg Research raised concerns about EHang's order book and fake sales, stating that the company has a major credibility issue.
Nov. 25, 2023 08:13
Encouragement for EHang

Hagens Berman is urging investors who have suffered significant losses from EHang Holdings Limited (NASDAQ: EH) to submit their losses now. The law firm is conducting an investigation into EHang's statements regarding the business prospects of its electric vertical take-off and landing (eVTOL) aircraft. The investigation comes after Hindenburg Research published a report titled "EHang: Hollow Order Book And Fake Sales Make This China-Based eVTOL Company Last In Line For Takeoff," which raised serious concerns about EHang's credibility.

Hindenburg Research pointed out that EHang's share price surged due to a recently granted aircraft design certification from the Chinese government and a pre-order book of over 1,300 units, suggesting imminent large-scale revenue. However, Hindenburg discovered that EHang failed to fully disclose the numerous flight restrictions that come with the certification, which invalidate the bulk of its commercial use cases. The report also highlighted that EHang's flagship aircraft would require a billion-dollar redesign and a different class of certification to overcome these limitations.

Furthermore, Hindenburg found that more than 92% of EHang's claimed pre-order book is based on "dead" or "abandoned" deals, failed partnerships, and newly-formed customer entities with no discernible operations. For example, EHang's largest deal is a 1,000 unit pre-order from United Therapeutics, but United is seeking aircraft with a 250 nautical range, while EHang only offers a 19-mile range. A United executive questioned the certifiability of EHang's aircraft design.

In response to the report, the price of EHang American Depositary Shares closed significantly lower on November 7, 2023. Hagens Berman is now investigating whether EHang misled investors about the possibility of converting the purported 1,300+ pre-orders into actual sales revenues. Reed Kathrein, the partner leading the investigation, emphasized their focus on investors' losses and invited those who have suffered substantial losses or have relevant information to submit their losses.

If you are interested in more information about the EHang investigation or have frequently asked questions, you can find answers by visiting the provided link. Hagens Berman also encourages whistleblowers with non-public information about EHang to consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Whistleblowers who provide original information may be eligible for rewards up to 30% of any successful recovery made by the SEC.

Hagens Berman is a global plaintiffs' rights complex litigation law firm that focuses on corporate accountability through class-action law. The firm has a strong securities litigation practice and represents investors, whistleblowers, workers, consumers, and others in cases involving corporate negligence and fraud. For more information about the firm and its successes, you can visit their website.