(Reuters) - Nio Inc investors can proceed as a class in a lawsuit claiming the Chinese electric vehicle maker lied about building its own factory in Shanghai during its 2018 initial public offering, a U.S. judge has ruled.
Chinese electric vehicle start-up Nio Inc. company logo is on display on its initial public offering (IPO) day at the NYSE in New York, U.S., September 12, 2018.
Securities class actions rarely go to trial; those that are not dismissed typically result in settlements.
When Nio disclosed the plant would not be built in March 2019, its ADS price dropped 30%, from around $10 to $7 per share, the investors said.
Nio ADS were trading at around $13.50 per share on Wednesday, down about 3.9% from Tuesday’s closing price.The case is In re: NIO, Inc., Securities Litigation, U.S. District Court, Eastern District of New York, No.
Persons:
Brendan McDermid, Nicholas Garaufis, Morgan Stanley, Goldman Sachs, Nio
Organizations:
Reuters, Nio Inc, NYSE, REUTERS, underwriters, U.S, Securities, Inc, Securities Litigation, Court, Eastern District of
Locations:
Shanghai, U.S, New York, Nio, Eastern District, Eastern District of New York