BENSALEM, Pa.–(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;–Law Offices of Howard G. Smith announces that a class action lawsuit has
been filed on behalf of investors who purchased Nio Inc. (“NIO” or the
“Company”) (NYSE: NIO)
securities issued in connection with the Company’s September 2018
initial public offering (“IPO” or the “Offering”). NIO investors have
until May 13, 2019 to file a lead plaintiff motion.
Investors suffering losses on their NIO investments are encouraged to
contact the Law Offices of Howard G. Smith to discuss their legal rights
in this class action at 888-638-4847 or by email to [email protected].
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.
If you purchased shares of NIO, have information or would like to learn
more about these claims, or have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by
telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected],
or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
