Ideanomics, Inc. (IDEX) Accused of Misleading Shareholders
In May 2020, Ideanomics touted that its Mobile Energy Global (“MEG”) center “in Qingdao now hosts a full suite of car dealer services for new energy and used cars with a capacity of 18,000 vehicles onsite.” Then, on June 9, 2020, Ideanomics announced that auto dealers operating in MEG have sold 2,139 vehicles for a total of $33 million. However, on June 25, 2020, Hindenburg Research revealed that Ideanomics had manipulated photos to suggest it owns/operates the MEG center and “to drive its stock price up.” Hidenburg also had an investigator call some of Ideanomics’ purported customers and “‘none of them were aware of Ideanomics and none were able to confirm doing business with’ Ideanomics”. That same day J Capital Research stated “ne thing remains a constant …shareholders get wiped out.” After attempts by Ideanomics to clarify the findings in these reports, Hidenburg Research stated “e continue to believe that Ideonomics is engaged in flagrant securities fraud and that its stock will end up in pennies.” On this news, Ideanomics’ share price fell over 53% over two days to close at $1.46 per share on June 26, 2020.
