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GDHG.US
id: 918

Golden Heaven Group (GDHG) Hindenburg Investigation Case

C.D. California
Court
2:23-cv-10619
Case number
04/13/2023
Class period Start
11/13/2023
Class period End
02/19/2024
Lead Plaintiff motion deadline
  • On November 13, Hindenburg, in its posts on X, accused Golden Heaven of lying to investors about the state of its park business.
  • On this news, $GDHG fell 27.9% destroying shareholder value.
  • One of the affected DR holders already filed the initial claim vs. Golden over misleading in California court.
On November 13, 2023, Hindenburg Research posted on X a series of posts under the heading “NEW FROM US: We Are Short Golden Heaven Group, Another Classic ‘China Hustle’”. Among other things, Hindenburg noted:
  • $GDHG dramatically went up in value since its IPO in April 2023, despite little news to justify the gains.
  • Its research showed that Golden Heaven’s CEO has “a history of undisclosed fraud allegations and asset freezes in China”, that “the company was taken public by securities firms with multiple FINRA infractions” and that Golden Heaven’s “claimed high-tech parks appear to be dystopian hellscapes.”
  • According to the company, the largest park, Yueyang Amusement World had 890,000 guests in 2022, or 2,400/day, despite having just a 1,100 guest capacity.
  • The investigator visited Golden's 6 facilities and observed extremely low attendance and facility deterioration, contrary to the Company's representations to investors.
On this news, $GDHG declined 27.9%, seriously damaging investors.

Considering Hindenburg's findings, Investors have reasons to suspect Golden of lying about attendance rates and facility conditions of their amusement parks. One of the affected DR holders has already filed the initial claim vs. Golden in California court.
Case Status
Motion to dismiss
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
11/13/2023
Filing date
12/19/2023
Lead Plaintiff Deadline
02/19/2024
Judge
Hon. Christina A. Snyder
Collecting participants…

Golden Heaven Group Holdings Ltd.

Golden Heaven Group Holdings Ltd., together with its subsidiaries, engages in the management and operation of urban amusement parks, water parks, and complementary recreational facilities in China....

    Ticker
    GDHG.US
    CIK
    1928340
    Sector
    Consumer Cyclical
    Industry
    Leisure
    Country
    USA
    Address
    No. 8 Banhouhaichuan Road, Nanping, China, 353001