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NIO, Inc.

Securities Class Action

  • Date:
  • 10/24/2022
  • Company Name:
  • NIO, Inc.
  • Stock Symbol:
  • NIO
  • Class Period:
  • FROM 8/20/2020 TO 7/11/2022
  • Status:
  • Filed
  • Filing Date:
  • 8/25/2022
  • Court:
  • U.S. District Court: Southern District of New York

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Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against NIO, Inc. (“NIO” or the “Company”) (NYSE: NIO) in the United States District Court for the Southern District of New York on behalf of all persons and entities who purchased or otherwise acquired NIO securities between August 20, 2020 and July 11, 2022, both dates inclusive (the “Class Period”). Investors have until October 24, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

On June 28, 2022, Grizzly Research published a report alleging, among other things, that NIO inflated its net income by about 95% through sales to a related party, Wuhan Weineng Battery Asset Co. (“Weineng”).

On this news, the Company’s American Depositary Shares (“ADSs” or “shares”) fell $0.59, or 2.5%, to close at $22.36 per share on June 28, 2022, on unusually heavy trading volume.

Then, on July 11, 2022, NIO announced that it formed a special committee to oversee an investigation into the allegations in the Grizzly Research report.

On this news, the Company’s shares fell $2.03, or 8.9% to close at $20.57 per share on July 11, 2022, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that NIO pulled forward revenue by selling batteries to a related party, which owned the batteries and managed users’ subscriptions; (2) that, through the related party, NIO also recognized enormous depreciation savings; (3) that, as a result of the foregoing, the Company’s revenue and net loss were overstated; and (4) 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 or otherwise acquired NIO shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out the form below.  There is no cost or obligation to you.
The individual or institution below (“Plaintiff”) has reviewed and agrees to the Bragar Eagel & Squire, P.C. (“BESPC”) retainer agreement and authorizes BESPC to prosecute an action on Plaintiff’s behalf under the federal securities laws or applicable state laws to recover damages on behalf of investors in NIO. BESPC will prosecute the action on a full contingency basis and will forward all costs and expenses.
 

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