Kandi CEO (Xiaoming Hu) disclosed last year that the company was subpoenaed by the SEC (Securities Exchange Commission) and under investigation, although he was not required to do so.
For being honest and transparent while most US companies would never disclose it, the stock has been very volatile last year closing twice at an All-Time-High of $22 before dropping to high $10's following negative articles and reports sponsored by short sellers.
After numerous speculations and accusations by short sellers that Kandi was a total fraud, yesterday the company announced it received a letter from the SEC stating that no enforcement action will be taken and the investigation is now closed. A big slap in the face for the 7+ Million shares short out of a 20 Million float...
http://globenewswire.com/news-release/20...ation.html
JINHUA, China, Feb. 17, 2015 (GLOBE NEWSWIRE) -- Kandi Technologies Group, Inc. ("Kandi" or the "Company") announced today that it received a letter dated February 9, 2015 from the staff of the Enforcement Division of the U. S. Securities and Exchange Commission (the "SEC") advising that the Division has concluded its investigation of Kandi and, based on information received to date, does not intend to recommend to the Commission that any enforcement action be brought against Kandi. This formally concludes the SEC's investigation that commenced in 2013. As previously disclosed, Kandi received notice of a formal investigation and a subpoena dated November 21, 2013 in connection with the SEC's investigation.
Hu Xiaoming, Kandi's Chairman of the Board and Chief Executive Officer commented: "We are extremely pleased that the SEC has concluded its investigation, particularly since its existence was the subject of much misleading and harmful press by those holding short positions in the Company's securities. We respect the SEC and its mandate to protect investors, and cooperated in its investigation. As I have stated before, Kandi's management's primary interests have always been twofold – shareholder protection and building a solid foundation for the continued long term growth of the Company. We will continue to pursue those goals with transparency and in compliance with all applicable laws and regulations."