SAN DIEGO & SHANGHAI--(BUSINESS WIRE)--
Shareholder rights law firm Robbins Arroyo LLP informs investors that a shareholder has filed a complaint against NIO Inc. (NIO) for alleged violations of the Securities and Exchange Act of 1933 based on alleged misrepresentations related to the company's September 2018 initial public offering ("IPO"). NIO designs, manufactures, and sells electric vehicles in the People's Republic of China, the U.S., Germany, and the U.K.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/nio-inc-jun-19/
NIO Accused of Inflating Its IPO Price
According to the complaint, on September 12, 2018, NIO conducted its IPO, offering 160 million American Depository Shares ("ADSs") at $6.26 per share, for over $1 billion in total proceeds. According to the Registration Statement, NIO intended to use 25% of the proceeds of the IPO to develop a manufacturing facility and roll out its supply chain. The intended effect would be a significant decrease in manufacturing costs and less reliance on Chinese government-owned JAC Auto. The Registration Statement also touted NIO's mobile app, indicating "over 520,000 registered users as of August 28, 2018." The complaint asserts that these allegations were misleading. Specifically, on March 5, 2019, NIO revealed it was no longer building its own manufacturing plant and would continue to rely on JAC Auto, causing NIO's ADSs to close down over 30% over two trading days. Then, on April 2, 2019, NIO revealed it only had "190,000 active users on peak days in 2018." The stock steadily declined following this announcement, and currently trades at just $2.76.
NIO Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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