NEW YORK, April 25, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Singularity Future Technology Ltd. (NASDAQ: SGLY) on behalf of long-term stockholders following a class action complaint that was filed against Singularity on December 5, 2022 with a Class Period from September to December 2021. Our investigation concerns whether the board of directors of Singularity have breached their fiduciary duties to the company.
Between September and December of 2021, Defendants—including Jie who was later revealed to be a convicted fraudster on the run from Chinese authorities—engaged in a scheme of material misrepresentations and omissions to convince Plaintiffs to invest millions of dollars in Singularity’s purported cryptocurrency business that Defendants falsely claimed would earn Plaintiffs “10x” investment returns in a short period of time.
Relying on Defendants’ representations, Plaintiffs agreed to invest over $4.4 million for shares in Singularity pursuant to terms and conditions of a Securities Purchase Agreement (“SPA”) dated on or about December 14, 2021.
However, before the ink was dry on the SPA, Singularity began breaching its provisions.
Within days of Plaintiffs’ monies being wired to Singularity’s bank account, Singularity used those funds to pay off warrants held by earlier investors despite the fact that the SPA had represented that no warrants to other investors were outstanding and that Plaintiffs’ money would be used to further Singularity’s business operations.
Additional breaches of the SPA by Singularity include its failure to file required periodic reports (e.g., Form 10-Q) with the Securities and Exchange Commission (“SEC”), rendering as useless what had been a crucial term of the SPA—namely, the opportunity for Plaintiffs to timely receive unrestricted, free-trading shares of Singularity common stock directly from the issuer at a discount.
Singularity has since categorically failed to cure its regulatory filing deficiencies despite having ample financial resources to do so, thereby further destroying the benefit of what Plaintiffs bargained for in the SPA.
Because Singularity has failed to honor and breached the terms of the SPA, Plaintiffs are currently unable to remove the restrictive legends on their shares of stock and sell them into the public markets. In duping Plaintiffs to make their investment and then immediately breaching obligations under the SPA, Defendants have violated federal securities laws, committed common law fraud, and breached their contractual obligations.
To date, Singularity has failed and refused to return any of the monies that Plaintiffs invested.
As a result of Defendants’ wrongful conduct, Plaintiffs are entitled to an award for damages, punitive damages, attorneys’ fees, and the costs of bringing this action.
If you are a long-term stockholder of Singularity, 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 or Marion Passmore by email at email@example.com, by 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.