Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $250,000 In NIO To Contact Him Directly To Discuss Their Options
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against NIO, Inc. (“NIO” or the “Company”) (NYSE: NIO) and reminds investors of the October 24, 2022 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the company.
If you suffered losses exceeding $250,000 investing in NIO stock or options between August 20, 2020 and July 11, 2022 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
There is no cost or obligation to you.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that NIO pulled forward revenue by selling batteries to a related party, which owned the batteries and managed users’ subscriptions; (2) that, through the related party, NIO also recognized enormous depreciation savings; (3) that, as a result of the foregoing, the Company’s revenue and net loss were overstated; and (4) 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.
On June 28, 2022, Grizzly Research published a report alleging, among other things, that NIO inflated its net income by about 95% through sales to a related party, Wuhan Weineng Battery Asset Co. (“Weineng”).
On this news, the Company’s American Depositary Shares (“ADSs” or “shares”) fell $0.59, or 2.5%, to close at $22.36 per share on June 28, 2022, on unusually heavy trading volume.
Then, on July 11, 2022, NIO announced that it formed a special committee to oversee an investigation into the allegations in the Grizzly Research report.
On this news, the Company’s shares fell $2.03, or 8.9% to close at $20.57 per share on July 11, 2022, on unusually heavy trading volume.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding NIO’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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Filed on 07/11/2022
Class period 08/20/2020 - 07/11/2022
Lead Plaintiff Deadline 10/24/2022
24 days remaining
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James M. Wilson, Jr. firstname.lastname@example.org Phone (212) 983-9330 Fax (212) 983-9331
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