Singularity Future Tech. Ltd failed to convince a federal court to fully dismiss a proposed securities class action filed after short sellers saidd its CEO was wanted in China for running a Ponzi scheme.
Singularity shareholders sufficiently alleged that the logistics and Bitcoin mining venture made false statements about its supposed business partners, which the US District Court for the Eastern District of New York said were “potentially set up” to siphon funds away from a failing business. Singularity’s stock dropped 30% and then 11% after the short sellers published their reports, the shareholders said.
Judge Brian M. Cogan said ...
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