An investigation on behalf of investors of Cango Inc. (NYSE: CANG) shares over potential securities laws violations by Cango Inc. and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Cango Inc. (NYSE: CANG) concerning whether a series of statements by Cango Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Shanghai, China based Cango Inc. operates an automotive transaction service platform that connects dealers, financial institutions, car buyers, and other industry participants in the People's Republic of China. Cango Inc. reported that its annual Total Revenue rose from 434.27 million CNY in 2016 to over 1.05 billion CNY in 2017 and that its Net Income increased from 128.9 million CNY in 2016 to 341 million CNY in 2017.

Cango Inc. went public in July 2018 and sold 4 million ADRs at $11.00 per share. Since the initial public offering shares of Cango Inc. (NYSE: CANG) declined to as low as $6.66 per share on March 29, 2019.