In a riveting turn of events, an investor, Denise Labelle, has launched a proposed class action against Future FinTech Group Inc., a blockchain-based financial services company, and its executives in New Jersey federal court. Labelle claims that she and her fellow shareholders fell victim to a cunning stock price inflation scheme orchestrated by the company’s CEO, Shanchun Huang, recently accused by the U.S. Securities and Exchange Commission (SEC).
Fintech Investor Sues Over CEO’s Alleged Stock Inflation : A Deceptive Saga Unveiled
Labelle, in her complaint filed on Tuesday, contends that between March 10, 2020, and Jan. 11, she and other class members unwittingly paid exorbitant prices for Future FinTech securities. The lawsuit alleges that they were intentionally misled into doing so, falling prey to a web of deceit spun by the company’s leadership.
CEO’s Machiavellian Maneuvers
Huang, who assumed the role of Future FinTech’s CEO in March 2020, stands accused of deliberately amassing substantial amounts of company stock before his tenure. The objective: to artificially inflate the stock price, ensuring it remained above the critical one-dollar threshold for listing on the Nasdaq Stock Market.
Fintech Investor Sues Over CEO’s Alleged Stock Inflation : A Web of Deception
The complaint states, “Had plaintiffs and the other members of the class known the truth regarding Future FinTech’s true value and defendants’ price manipulation, they would not have purchased or otherwise acquired Future FinTech shares.” Labelle alleges that Huang, along with former CFO Jing Chen and current CFO Ming Yi, orchestrated a symphony of misleading statements about the company’s viability while concealing Huang’s alleged stock manipulation.
SEC’s Revelation Fuels Legal Firestorm
The SEC’s lawsuit on Jan. 11 forms the backbone of Labelle’s allegations. It claims that Huang failed to disclose his beneficial ownership of Future FinTech stock before becoming CEO and engaged in secret share purchases to prop up the stock price, preventing it from plunging below the one-dollar mark and triggering Nasdaq delisting.
Legal Repercussions Await
Labelle’s complaint accuses Future FinTech and the implicated executives of violating the Securities Exchange Act through market manipulation and disclosure failures. Seeking to represent her proposed class, Labelle demands compensatory damages and legal fees for her deceived fellow shareholders.
Radio Silence Amidst Legal Storm
As the legal battle intensifies, neither the accused parties nor their representatives have offered immediate comments in response to the allegations.
Fintech Investor Sues Over CEO’s Alleged Stock Inflation : Way Forward
Labelle, along with the proposed class, is represented by Laurence Rosen of The Rosen Law Firm PA, while counsel information for Future FinTech and its executives remains elusive.
