On May 5, 2022, Hindenburg Research issued a report about Singularity entitled “Singularity Future Technology: This Nasdaq-Listed Company’s CEO Is A Fugitive, On The Run For Allegedly Operating A Massive Ponzi Scheme.” Then, on October 7, 2022, Singularity filed with the SEC its Form 8-K that disclosed issues with the company’s internal controls by reporting a potential delisting by NASDAQ. Finally, on November 16, 2022, Singularity filed with the SEC its Form 8-K that disclosed governmental investigations of Singularity related to the claims raised by Hindenburg Research on May 5, 2022 and other related matters.

The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose, among other things: (1) CEO, Yang Jie’s true educational background, that he had an outstanding arrest warrant in China, committed forgery, and was the largest shareholder and VP of Finance for a Nasdaq-listed lending company, China Commercial Credit (“CCC”), which failed after reporting massive losses; (2) material related party transactions with SOS Information Technology New York Inc. and Rich Trading Co. Ltd USA; (3) Director John Levy’s prior tenure from January 2013 through December 2016 as a director of CCC which failed amidst detailed allegations that Jie, when he was an executive and shareholder in CCC, misappropriated assets; and (4) Singularity lacked adequate internal controls and as a result had a heightened risk of scrutiny and ultimately was subject to a United States Attorney’s Office for the Southern District of New York and SEC investigation and action as well as a potential delisting by NASDAQ.