Case View

NIO INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THEIR INVESTMENT LOSSES

NIO Inc.

Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired NIO Inc. (“NIO” or the “Company”) (NYSE: NIO) securities between August 20, 2020 and July 11, 2022, inclusive. The lawsuit seeks to recover NIO shareholders’ investment losses.

If you purchased securities in NIO Inc. between August 20, 2020 and July 11, 2022, inclusive, and would like to discuss your legal rights and/or options, please click “Join Class Action” above.

NIO designs, develops, manufactures, and sells smart electric vehicles.  It purports to differentiate itself through technological breakthroughs and innovations, such as its battery swapping technologies (i.e., Battery as a Service) and proprietary autonomous driving technologies, including Autonomous Driving as a Service.

Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period.  Specifically, Plaintiff alleges that Defendants failed to disclose that: (1) NIO pulled forward revenue by selling batteries to a related party which owned the batteries and managed users’ subscriptions; (2) through the related party, NIO also recognized enormous depreciation savings; and (3)as a result of the foregoing, the Company’s revenue and net loss were overstated.

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”).  In sum, the report alleged: that “[b]y transferring the burden of collecting monthly subscriptions to Weineng, NIO has accelerated its revenue growth. Instead of recognizing revenue over the life of the subscription (~7 years), Weineng allows NIO to recognize revenue from the batteries they sell immediately.”

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.

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.

If you wish to serve as lead plaintiff, you must move the Court no later than October 24, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.

Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.

ATTORNEY ADVERTISING. © 2022 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

Contact Information:

Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com