NIO ($NIO) Artificial Revenue Boost and Battery Depreciation Abuse Case

The defendant has requested the court to dismiss the case.

S.D. New York

Court

1:22-cv-07252

Case number

08/11/2020

Class period Start

07/11/2022

Class period End

On July 11, 2022, NIO announced that in response to the allegations made in a report issued by the short-seller firm Grizzly Research LLC on June 28, 2022, the Company’s Board, including the audit committee, after having reviewed the allegations, has decided to form an independent committee, consisting of independent directors to oversee an independent investigation.  The Independent Committee has retained independent professional advisors to assist with the Independent Investigation, including an international law firm and a well-regarded forensic accounting firm.
On this news, the NIO’s shares fell by 8.9%.
Two weeks earlier Grizzly Research LLC issued a report that stated that NIO "is likely using an unconsolidated related party to exaggerate revenue and profitability."
Given the development of the situation, there is reason to believe that the Company could significantly violate the interests of investors by using unfair corporate and business practices.

Case Type

US Securities Class Action

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Fraud,

Failure to Disclose,

Malpractice,

Negligence,

Breach of Fiduciary duty,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

07/11/2022

Filing date

02/28/2022

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