Glancy Prongay & Murray LLP Files a Securities Class Action Behalf of NIO Inc. Investors (NIO)
LOS ANGELES–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24NIO&src=ctag” target=”_blank”gt;$NIOlt;/agt; lt;a href=”https://twitter.com/hashtag/CLASSACTION?src=hash” target=”_blank”gt;#CLASSACTIONlt;/agt;–Glancy
Prongay & Murray LLP (“GPM”) announces that it has filed a class
action lawsuit in the United States District Court for the Eastern
District of New York, captioned Tarapara v. NIO inc. et al.,
(Case No. 1:19-cv-02777), on behalf of persons and entities that
purchased or otherwise acquired Nio Inc. (NYSE: NIO)
(“NIO” or the “Company”) securities pursuant and/or traceable to the
Company’s false and/or misleading registration statement and prospectus
(collectively, the “Registration Statement”) issued in connection with
the Company’s September 2018 initial public offering (“IPO” or the
“Offering”). Plaintiff pursues claims under Sections 11 and 15 of the
Securities Exchange Act of 1934 (the “Exchange Act”).
Investors are hereby notified that they have until May
13, 2019 to move the Court to serve as lead plaintiff in this action.
If you are a shareholder who suffered a loss, click here
to participate.
In September 2018, the Company completed its initial public offering
(“IPO”), selling 183 million American Depositary Shares (“ADSs” or
“shares”) at a price of $6.26 per share. Each ADS represents one share
of common stock. The Company received proceeds of approximately $1.15
billion from the IPO, net of underwriting discounts and commissions. The
proceeds from the IPO were purportedly to be used for research and
development of products; selling and marketing and development of sales
channels; development of manufacturing facilities and roll-out of its
supply chain; and general corporate purposes and working capital.
Notably, approximately $238.7 million was to be used for the development
of its Shanghai manufacturing facility.
Then, on March 5, 2019, the Company announced that it would no longer
build its own manufacturing plant and would instead rely on state-owned
manufacturer, JAC Auto. The Company also reported that electric vehicle
deliveries fell due to anticipated subsidy reductions in China in 2019.
On this news, the Company’s share price fell $3.07, or over 30%, over
the next two trading days to close at $7.09 per share on March 7, 2019,
on unusually heavy trading volume.
On May 9, 2019, the Company’s share price closed at $4.60 per share,
which is a decline of $1.66, or approximately 27%, from the IPO price of
$6.26.
The complaint filed in this class action alleges that the Registration
Statements were false and misleading and omitted to state material
adverse facts. Specifically, Defendants failed to disclose to investors:
(1) that the Company would not build its own manufacturing plant; (2)
that, instead, the Company would rely on JAC Auto, a manufacturer owned
by the Chinese government; (3) that reductions in government subsidies
for electric cars would materially impact the Company’s sales; (4) that
the number of registered users of the Company’s mobile application did
not reflect the active user base; and (5) that, as a result of the
foregoing, Defendants’ positive statements about the Company’s business,
operations, and prospects were materially misleading and/or lacked a
reasonable basis.
Follow us for updates on Twitter: twitter.com/GPM_LLP.
If you purchased NIO securities during the IPO, you have until May
13, 2019 to ask the Court to appoint you as lead plaintiff. To be a
member of the Class you need not take any action at this time; you may
retain counsel of your choice or take no action and remain an absent
member of the Class. If you wish to learn more about this action, or if
you have any questions concerning this announcement or your rights or
interests with respect to these matters, please contact Lesley Portnoy,
Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles,
California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com,
or visit our website at www.glancylaw.com.
If you inquire by email please include your mailing address, telephone
number and number of shares purchased.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay and Murray LLP, Los Angeles
Lesley Portnoy,
310-201-9150 or 888-773-9224
www.glancylaw.com
shareholders@glancylaw.com