Investigation of ACM Research Inc
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ACM Research, Inc. (ACMR) Misled Shareholders Regarding the Company’s Financia Prospects and Growth
According to the complaint, throughout the relevant period, defendants touted the Company’s financial profitability and growth in sales. However, these statements were false and misleading because defendants failed to disclose that the Company had diverted revenues and profits to undisclosed related parties and had materially overstated its revenues and profits.
On October 8, 2020, analyst J Capital Research published a report concluding that ACM Research “is a fraud, over-reporting both revenue and profit.” The reported concluded that ACM Research’s revenue was overstated by 15-20% and claimed to have “evidence that undisclosed related parties are diverting revenue and profit from the company.” On this news, ACM Research’s stock declined $1.09 per share on October 8, 2020.