We are investigating Ideanomics, Inc. (IDEX) (“Ideanomics” or the “Company”) for potential violations of the federal securities laws.
On June 25, 2020, analyst Hindenburg Research (“Hindenburg”) issued a series of tweets in which it characterized Ideanomics as “an egregious & obvious fraud.” Hindenburg claimed to have found evidence that Ideanomics had doctored photos for use in Company press releases in order to suggest that the Company owns or operates a vehicle sales center in Qingdao, China, when it in fact does not. Hindenburg further asserted that it had tasked an investigator to visit Ideanomics’ purported MEG Center in Qingdao, but the investigator was unable to find any trace of Ideanomics’ presence or the Company’s purported MEG Center. That same day, analyst J Capital Research (“J Capital”) issued a report on Ideanomics entitled “Champion of Promotes.” J Capital wrote, in part, that “Ideanomics . . . is a zero. The company changes its name and promotional story so frequently that it’s hard to keep up. One thing remains a constant, despite all the press releases, buzzwords and hype: shareholders get wiped out.” J Capital also stated in a tweet that “[w]e called all the ‘buyers’ named in [Ideanomics’] press releases this month. Not a single one had made a purchase. One of them thanked us for alerting them to ‘fake news.’” On this news, Ideanomics’ stock price fell $0.65 per share, or 21.04%, to close at $2.44 per share on June 25, 2020.