SAN DIEGO & SHANGHAI–(BUSINESS WIRE)–$NIO #ClassAction–Shareholder rights law firm Robbins
Arroyo LLP informs investors that a shareholder has filed a
complaint against NIO Inc. (NYSE: NIO) for alleged violations of the
Securities and Exchange Act of 1933 based on alleged misrepresentations
related to the company’s September 2018 initial public offering (“IPO”).
NIO designs, manufactures, and sells electric vehicles in the People’s
Republic of China, the U.S., Germany, and the U.K.
View this information on the law firm’s Shareholder Rights Blog: https://www.robbinsarroyo.com/nio-inc-jun-19/
NIO Accused of Inflating Its IPO Price
According to the complaint, on September 12, 2018, NIO conducted its
IPO, offering 160 million American Depository Shares (“ADSs”) at $6.26
per share, for over $1 billion in total proceeds. According to the
Registration Statement, NIO intended to use 25% of the proceeds of the
IPO to develop a manufacturing facility and roll out its supply chain.
The intended effect would be a significant decrease in manufacturing
costs and less reliance on Chinese government-owned JAC Auto. The
Registration Statement also touted NIO’s mobile app, indicating “over
520,000 registered users as of August 28, 2018.” The complaint asserts
that these allegations were misleading. Specifically, on March 5, 2019,
NIO revealed it was no longer building its own manufacturing plant and
would continue to rely on JAC Auto, causing NIO’s ADSs to close down
over 30% over two trading days. Then, on April 2, 2019, NIO revealed it
only had “190,000 active users on peak days in 2018.” The stock steadily
declined following this announcement, and currently trades at just $2.76.
NIO Shareholders Have Legal Options
Concerned shareholders who would like more information about their
rights and potential remedies can contact attorney Leo Kandinov at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder
rights law. The firm represents individual and institutional investors
in shareholder derivative and securities class action lawsuits, and has
helped its clients realize more than $1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.