In the premarket trading, SOS Limited stock plunged by-5.31% to trade at $3.92. SOS stock closed last session at $4.14 which is a -3.94% loss. The company’s stock price oscillated between $4.11 and $4.50today. The share volume traded today was 23.79 million. While the average trading volume for the past 3 months has been 74.95 million. In the past 1 year, SOS stock has jumped up by 314.00%. In the past week, the shares slumped down to -8.61%. In the last three and six months, the stock has increased by 105.97% and 59.85%, respectively. The current value of SOS Limited (SOS) in the market is $773.93 million while its outstanding shares are 186.94 million.
SOS stock is not yet free from the claims of fraud and lawsuit filings
Just today, 23rd April 2021, Jakubowitz Law announced that it has also joined the barrage lawsuit claims against SOS by commencing securities fraud class action lawsuit on SOS for the class period 22nd July 2020- 25th February 2021.
Similarly Pomerantz Law firm has reminded SOS shareholders (who faced losses) to take part in the lawsuit prior to the deadline of 31 May 2021. The list of reminder goes on from law offices of HAGENS BERMAN, Levi &Korsinsky, Frank R. Cruz, Vincent Wong, and others, all of whom had initiated the investigations after the Hidenburg Research tweeted about the company being allegedly involved in fraudulent activities related to claims of cryptocurrency mining operations and location of its office.
SOS limited had only once fought back the claims by issuing a statement on its website regarding these claims being false accusations only to be made for the economic benefit of the short sellers.
Context behind SOS’s crypto-mining operations and claims of fraud
On January 2021, SOS stock announced its crypto mining plans for investing heavily into acquiring mining machines and benefitting from growing investor’s interest in crypto assets. The crypto mining operations are handled by SOS Information Technology (SOS) which is a subsidiary of SOS Limited. Earlier in February the Company announced the acquisition of 5000 crypto mining machines while almost 2 weeks ago it announced the launching of a cloud crypto center established in Hejian County.
These were later claimed by investigative researchers to be fake news, as covered in our previous article.
Investigative research had led to finding out that the company had posted several fake and dummy photos as well as inaccurate press releases which called out to be misrepresenting and bogus.
The Hidenburg Research and Culper Research claim that SOS is an elaborate “pump and dump” scheme that claimed to have bought 15,000 mining rigs on 21 January only to give doctored photos of the crypto miners. Investors fear the risk of investing in SOS stock.
A respond to the claims?
SOS Ltd has not responded back to these allegations which have dragged on for few months, by not continuing to do so, the SOS stock is plunging as more and more investors give in to the fear of fraud and overwhelming lawsuits. This is making SOS lose investor’s confidence.