NEW YORK, Oct. 09, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against ACM Research, Inc. (“ACMR”) (NASDAQ: ACMR) on behalf of ACMR stockholders. Our investigation concerns whether ACMR has violated the federal securities laws and/or engaged in other unlawful business practices.
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ACMR and senior management have repeatedly assured investors of the adequacy of the company's internal controls over financial reporting and repeatedly touted its revenue and earnings growth.
But, on Oct. 8, 2020, J Capital Research published a report, entitled “Dirty business,” bringing all of management's prior statements into serious question.
More specifically, J Capital concludes ACMR is a fraud, over-reporting both revenue and profit. According to the report, “ACMR reports industry-beating gross margins of 47%” but “[w]e believe the real gross margins are half at best.” J Capital also concludes revenues are overstated by 15-20%, undisclosed related parties are diverting revenue and profit from the company, the key means by which ACMR tunnels over-reported profit out of the company may be through about $20 million in overstated inventory and through cash that is inflated or compromised, and warranty and service costs are understated by at least $11 million.
On this news, ACMR’s share price declined sharply on Oct. 8, 2020, to close at $66.23 per share.
If you purchased or otherwise acquired ACMR shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at email@example.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.