EHang ($EH) Investor Settlement
EHang has reached a tentative settlement with $EH investors over claims that it misled the market by inflating pre-orders and promoting fake long-term deals.
Outline:
EHang reported a large backlog of pre-orders for its autonomous aerial vehicles. Investors later alleged the company overstated those orders and did not accurately disclose the status of certain partnerships. A research report in 2023 questioned the transactions and the stock declined. Investors filed suit and EHang later agreed to a settlement.
Timeline:
March 29, 2022: EHang reported more than 1,000 unfulfilled pre-orders and referenced agreements with United Therapeutics and Prestige Aviation.
April 11, 2022: The company announced a pre-order of 100 EH216 units from Prestige Aviation.
Throughout 2022–2023: EHang continued referencing these transactions in investor communications and earnings updates.
November 7, 2023: A research report questioned the status of the transactions and $EH declined about 12.7%.
October 14, 2024: Investors filed an amended securities class action complaint.
June 2025: EHang reached a tentative settlement to resolve the claims.
Background:
EHang is a China-based company developing autonomous aerial vehicles designed for passenger transportation and other commercial uses. The company promoted its technology as part of the emerging urban air mobility market.
During 2022 and 2023, EHang highlighted a backlog of pre-orders and referenced agreements with companies including United Therapeutics and Prestige Aviation. These transactions were presented as evidence of strong demand for its aircraft.
In November 2023, a research report questioned the status and scale of some of these transactions. The report suggested certain agreements had been canceled or involved fewer aircraft than previously indicated.
Following the report and related disclosures, EHang’s share price declined. Investors later filed a securities class action alleging that the company’s statements about its sales pipeline and partnerships were misleading.
What Can Investors Expect Now?
EHang agreed to a settlement with $EH investors to resolve claims that it misled them about pre-orders and commercial partnerships related to its autonomous aerial vehicles.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired the publicly-traded American Depositary Shares (“ADSs”) of EHang Holdings Limited between March 29, 2022 and November 6, 2023, inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.13 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.52 per share.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.