GlobeNewswire Inc | May 26, 2021 04:27PM EDT

May 26, 2021

NEW YORK, May 26, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against SOS Limited (SOS or the Company) (NYSE: SOS), and certain of its officers. The class action, filed in the United States (U.S.) District Court for the District of New Jersey, and docketed under 21-cv-07454, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired SOS American depository shares (ADSs) between July 22, 2020 and February 25, 2021, both dates inclusive (the Class Period), seeking to recover damages caused by Defendants violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission (SEC), against the Company and certain of its top officials.

If you are a shareholder who purchased SOS ADSs during the Class Period, you have until May 31, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

SOS is a technology company that purportedly provides marketing data, technology, and solutions for emergency rescue services. When the Company went public in April 2017, it was known as China Rapid Finance Limited and claimed to focus on a peer-to-peer, micro-lending business. The Company later changed its name to SOS Limited in July 2020 and sold its peer-to-peer, micro-lending business in August 2020, rebranding itself into an emergency services business. In January 2021, the Company again shifted its business focus, this time to cryptocurrency mining.

Critical to SOSs purportedly successful transition into a cryptocurrency mining business were the Companys claims to have entered into an agreement with HY International Group New York Inc. (HY), which calls itself the worlds largest mining machine matchmaker, to acquire 15,645 mining rigsi.e., personal computing machines built specifically for cryptocurrency miningfor $20 million, and the Companys plans to purchase FXK Technology Corporation (FXK), a purported Canadian cryptocurrency technology firm.

In addition to rapidly changing its business focus, SOS has also rapidly changed the location of its headquarters. According to the Companys SEC filings, the address of the Companys principal executive offices has changed no less than five times since the Company went public in April 2017.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) SOS had misrepresented the true nature, location, and/or existence of at least one of the principal executive offices listed in its SEC filings; (ii) HY and FXK were either undisclosed related parties and/or entities fabricated by the Company; (iii) the Company had misrepresented the type and/or existence of the mining rigs that it claimed to have purchased; and (iv) as a result, the Companys public statements were materially false and misleading at all relevant times.

On February 26, 2021, Hindenburg Research (Hindenburg) and Culper Research (Culper) released commentary on SOS, claiming that the Company was an intricate pump and dump scheme that used fake addresses and doctored photos of crypto mining rigs to create an illusion of success. The analysts noted, for example, that SOSs SEC filings listed a hotel room as the Companys headquarters. The analysts also questioned whether SOS had actually purchased mining rigs that it claimed to own, as the entity from which SOS purportedly bought the mining rigs appeared to be a fake shell company. The analysts further alleged that the photos SOS had published of their purported mining rigs were phony. Culper noted that photographs of SOSs miners did not depict the A10 Pro machines that the Company claimed to own and instead appeared to show different devices altogether. Hindenburg, for its part, found that the original images from SOSs website actually belonged to another company.

On this news, SOSs American depositary share (ADS) price fell $1.27 per share, or 21.03%, to close at $4.77 per ADS on February 26, 2021.

After the end of the Class Period, between February 27 and March 3, 2021, Hindenburg subsequently provided additional information on SOS that further supported its earlier allegations, including pictures, highlighting, inter alia, how SOS had allegedly taken steps to hide the misconduct noted in the February 26, 2021 corrective disclosures.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com888-476-6529 ext. 7980