The Complaint alleges that throughout the Class Period, Defendants issued materially false and misleading statements and omitted material facts necessary to make defendants’ statements not false or misleading, causing the price of Canaan ADRs to be artificially inflated. Specifically, the Complaint alleges that the statements Canaan issued during the Class Period about the Company’s business metrics and financial prospects were materially false and misleading in that they concealed that due to ongoing supply chain disruptions and the introduction of the Company’s next-generation A12 series bitcoin mining machines – which had cannibalized sales of the older product offerings – Canaan’s 4Q20 sales had declined more than 93% year-over-year compared to its fourth quarter fiscal year 2019 (“4Q19”) sales and more than 93% quarter-over-quarter compared to its third quarter FY20 (“3Q20”) sales.