Hebron through its subsidiaries, researches, develops, manufactures, and installs valves, pumps, pipe fittings, and other products. Hebron offers its fluid equipment and installation services for use in the pharmaceutical, biological, food and beverage, and other clean industries.
On June 3, 2020, Grizzly Research reported that Hebron is an “insider enrichment scheme without economic basis.” Grizzly Research discovered that: 1) institutional investors that are undisclosed related parties had bought stocks at a substantial premium market price creating a scheme designed to portray real interest in the stock and pushed the price artificially higher; 2) Hebron’s financial results filed with Chinese regulators are inconsistent with those filed with the SEC and Hebron’s SEC filings inflate annual revenues by over 80%; and 3) recently acquired entities were purchased from Hebron’s largest shareholder at inflated prices.
Grizzly Research also pointed to Hebron’s questionable transactions including an undisclosed transaction for roughly $26 million. Following this news, Hebron stock dropped as much as $8.26 per share, or nearly 37% to close at $14.29 per share on June 3, 2020.
A securities class action was filed on June 9, 2020 on behalf of investors who purchased Hebron securities between April 24, 2020 and June 3, 2020. The complaint alleges that Defendants concealed that: (1) many of Hebron’s recent “acquisitions” were in fact dysfunctional entities sold by company insiders; (2) the company’s disclosure controls regarding related party transactions were ineffective; and (3) as a result, certain of Defendants’ positive statements about its performance and outlook were materially misleading. The lead Plaintiff Deadline is August 10, 2020.
If you are a shareholder of Hebron who suffered a loss, we encourage you to contact our attorneys at Lowey Dannenberg at (914) 733-7256 or firstname.lastname@example.org to learn more about this case or to discuss your options.
Whistleblowers: Persons with non-public information regarding Hebron Technology should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Lowey Dannenberg
Lowey Dannenberg is a national firm representing institutional and individual investors, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has in the past recovered billions of dollars on behalf of investors.
Lowey Dannenberg P.C.
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Tel: (914) 733-7256