Boluka Garment Co. Ltd. v. Canaan Inc.

OPINION AND ORDER Boluka Garment Co., Limited (“Boluka”), and Hongkuo Tang, individually and on behalf of all others similarly situated, bring suit against Canaan Inc., five of its senior executives, and a number of companies involved in underwriting its initial public offering (together, “Defendants”), alleging violations of the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). Defendants have moved to dismiss the complaint for failure to state a claim. For the reasons that follow, the motion is granted. I. Background The following facts, drawn from the amended complaint, are presumed true for the purposes of this motion. (See Dkt. No. 51 (“AC”).) Canaan Inc., a Cayman Islands company headquartered in China, designs and manufactures computer hardware used for mining Bitcoin. (AC 2.) Between 2016 and 2018, Canaan made three unsuccessful attempts to go public on various Asian stock exchanges, each time abandoning its plans after regulatory scrutiny. (AC

38-41.) Canaan then set its sights on the United States. On November 21, 2019, after filing the relevant paperwork with the U.S. Securities and Exchange Commission, Canaan made an initial public offering of ten million shares on the Nasdaq Global Market. (AC