A lawsuit was filed on behalf of investors in NIO Inc. (NYSE:NIO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/08/2022 -- An investor, who purchased NYSE: NIO shares, filed a lawsuit against NIO Inc. over alleged violations of Federal Securities Laws.
Investors who purchased shares of NIO Inc. (NYSE: NIO) have certain options and for certain investors are short and strict deadlines running. Deadline: October 25, 2022. NYSE: NIO investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
China based NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. On June 28, 2022, Grizzly Research published a report alleging that NIO Inc. was using an unconsolidated related party, Wuhan Weineng Battery Asset Co., to inflate NIO's revenue and profits.
Then, on July 11, 2022, NIO Inc. disclosed that, after reviewing the Grizzly Research report, it had decided to form a committee to oversee an investigation regarding the allegations. The Company also disclosed that the committee retained independent advisors to assist the investigation, including an international law firm and a forensic accounting firm.
Shares of NIO Inc. (NYSE: NIO) declined from $24.43 per share on June 27, 2022 to as low as $18.59 per share on July 28, 2022.
The plaintiff claims that between March 1, 2021 and July 11, 2022, the Defendants failed to disclose to investors that NIO pulled forward revenue by selling batteries to a related party, which owned the batteries and managed users' subscriptions, that, through the related party, NIO also recognized enormous depreciation savings, that, as a result of the foregoing, the Company's revenue and net loss were overstated, and 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.
Those who purchased shares of NIO Inc. (NYSE: NIO) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation
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