Kehoe Law Firm, P.C. is investigating potential securities claims on behalf of investors of ACM Research Inc. (“ACM” or the “Company”) (NASDAQ: ACMR) to determine whether ACM engaged in securities fraud or other unlawful business practices.
ACM investors who purchased, or otherwise acquired, the Company’s securities and suffered significant losses are encouraged to complete Kehoe Law Firm’s Securities Class Action Questionnaire or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], [email protected], to discuss the securities investigation or potential legal claims.
On October 8, 2020, J Capital Research reported, among other things, that “ACMR reports industry-beating gross margins of 47%. [J Capital Research] believe[s] the real gross margins are half that at best. That would wipe out the company’s net profit.” J Capital Research also reported that it “. . . estimate[s] that revenue is overstated by 15-20%[,]” and that it has “. . . evidence that undisclosed related parties are diverting revenue and profit from the company[.]” Additionally, J Capital Research reported that the “[k]ey means by which ACMR tunnels over-reported profit out of the company may be through about $20 mln in overstated inventory costs and through cash that is inflated or just compromised. We think least $11 mln in warranty and service costs are understated.”
On this news, during intraday trading on October 8, 2020, shares of ACMR dropped, thereby injuring investors.