NEW YORK, April 30, 2019 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in NIO Inc. (“NIO” or the “Company”) (NYSE:NIO) of the May 13, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in NIO stock or options between September 12, 2018 and March 5, 2019 and would like to discuss your legal rights, click here: www.faruqilaw.com/NIO. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to rgonnello@faruqilaw.com.
CONTACT:
FARUQI & FARUQI, LLP
685 Third Avenue, 26th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
rgonnello@faruqilaw.com
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased NIO American Depository Shares (“ADS”) between September 12, 2018 and March 5, 2019 (the “Class Period”). The case, Tan v. NIO Inc. et al, Docket No. 19-cv-01424 was filed on March 12, 2019, and has been assigned to Judge Nicholas G. Garaufis.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) NIO would not be building its own manufacturing plant and would instead continue to rely on JAC Auto to manufacture its vehicles; (2) reductions in government subsidies for electric cars would materially impact NIO’s sales; and (3) as a result, Defendants’ statements about NIO’s business, operations, and prospects were materially false and misleading at all relevant times.
On March 5, 2019, after the market closed, Defendants released NIO’s earnings report for the fourth quarter of 2018, which disclosed, among other things, that NIO would be terminating its agreement with the Shanghai government to build its own manufacturing plant in Shanghai, and instead continue to contract with JAC Auto to build its cars; and that the Company’s deliveries of its electric vehicles fell from more than 3,000 vehicles in December 2018 to 1,805 vehicles in January 2019, and further dropped to 811 vehicles in February 2019.
On this news, the Company's stock price fell from $10.16 per share on March 6, 2019 to $7.09 per share on March 7, 2019—a $3.07 or 30 % drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding NIO’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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