Remark Holdings Inc. (NASDAQ: MARK) Securities Lawsuit Investigation

Remark Holdings claims to be a company that “primarily focuses on the development and deployment of artificial-intelligence-based [software] solutions.” The company claims to have business operations in Beijing, Shanghai, Chengdu, and Hangzhou, China. Forbes reports that Remark Holdings “claims to have signed up one of China’s largest banks” for its KanKan fintech (financial technology) platform.

But J Capital Research released a report on February 6, 2018 stating that it had investigated Remark Holdings’ business in China and found that there’s “[n]o ‘there’ there.” The report further stated, “Wherever we look, we cannot find a real business behind Remark Holdings.” According to SeekingAlpha, Remark Holdings’ claims of being a major player in China “don’t hold water.” J Capital spoke with “some of the biggest private lenders” in China, who had “never heard of the KanKan credit platform.” SeekingAlpha says that, as it turns out, Remark doesn’t even own the technology underlying KanKan (i.e., they have no patents for the technology).

After the release of the J Capital Research report, Remark’s stock dropped by nearly 25% to close at $6.95 on February 6, 2018, on heavy trading volume.

Remark officially responded stating that the J Capital report is “bogus,” and Remark claims to have just signed up Shanghai Open University (an online college) for its KanKan fintech platform.