Robbins Arroyo LLP Reminds Shareholders of Pending Class Action Against NIO Inc. (NIO)
SAN DIEGO & SHANGHAI, China--(BUSINESS WIRE)--Apr 4, 2019--Shareholder rights law firm Robbins Arroyo LLP reminds investors of the class action complaint filed against NIO Inc. (NYSE: NIO) for alleged violations of the Securities and Exchange Act of 1934 between September 12, 2018 and March 5, 2019. 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-2-apr-19/
NIO Accused of Inflating Company’s Outlook Amid Decreasing Demand and Disappointing Sales
According to the complaint, defendants represented that sales of NIO’s ES8 were significantly growing, reaching 11,348 vehicles for the year ended December 13, 2018, and that the company experienced “solid ramp-up in production and delivery in 2018, which demonstrated our execution capabilities” and represented that demand for the ES8 and ES6 were strong. On February 24, 2019, in a 60 Minutes segment, NIO’s Chairman and CEO represented that NIO had exceeded its goal of delivering 10,000 cars in 2018 and was “ramping up production.”
Then, on March 5, 2019, defendants disclosed the truth - that sales were declining and material negative trends would negatively impact Nio’s sales and revenues through at least the second quarter 2019. NIO had delivered just 1,805 ES8 vehicles in January 2019, a 45% decline from December 2018, and just 811 ES8 vehicles in February 2019, a 55% decline from January 2019. Over two days of trading, NIO’s ADSs declined over 30% to close at just $7.09 on March 7, 2019, and continue to decline. As a result, at least one analyst lowered their rating of NIO from neutral to underperform.
If you purchased NIO securities during the class period, you have until May 13, 2019, to ask the court to be appointed lead plaintiff for the class.
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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View source version on businesswire.com:https://www.businesswire.com/news/home/20190404005836/en/
CONTACT: Leo Kandinov
Robbins Arroyo LLP
5040 Shoreham Place
San Diego, CA 92122
(619) 525-3990 or Toll Free (800) 350-6003
KEYWORD: UNITED STATES ASIA PACIFIC NORTH AMERICA CHINA CALIFORNIA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES LEGAL
SOURCE: Robbins Arroyo LLP
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PUB: 04/04/2019 05:34 PM/DISC: 04/04/2019 05:34 PM