NIO, Inc. Securities Class Litigation


Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired the American Depository Shares (“ADSs”) of NIO, Inc. (“NIO” or the “Company”) (NYSE: NIO) from August 20, 2020 through July 11, 2022, inclusive (the “Class Period”).

If you purchased NIO ADSs during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 24, 2022.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff.  You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

NIO investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff complete the form below, text or email, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.

Background on the NIO Securities Class Litigation

NIO, headquartered in Shanghai, China, is an automobile manufacturer that specializes in designing, developing, and selling electric vehicles.  The company also develops battery-swapping stations as an alternative to conventional charging stations.  NIO gave its customers an option to purchase vehicles without batteries and to lease batteries from a third party through a subscription program.

The action alleges that NIO made false and misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects.  Specifically, the Company failed to disclose to investors: (1) that NIO improperly pulled forward revenue by selling batteries to an unconsolidated related party, Wuhan Weineng Battery Asset Co., Ltd. (“Weineng”), which owned the batteries and managed user subscriptions; (2) that, through Weineng, the Company recognized large depreciation savings; and (3) that, as a result of the foregoing, NIO overstated its revenue and understated its net loss.

On June 28, 2022, Grizzly Research LLC (“Grizzly Research”) published a report claiming that NIO inflated its net income by approximately 95% by selling batteries to Weineng and recognizing revenue on the sales immediately, rather than over the lifetime of customers’ subscriptions.  On this news, the price of NIO ADSs fell $0.59, or 2.57%, from a closing price of $22.95 per ADS on June 27, 2022, to close at $22.36 per ADS on June 29, 2022, on elevated trading volume.

On July 11, 2022, NIO announced that it had appointed a special committee of independent directors to oversee an investigation into the allegations in the Grizzly Research report.  On this news, the price of NIO ADSs fell $2.03, or 8.98%, from a closing price of $22.60 per ADS on July 10, 2022, to close at $20.57 per ADS on July 11, 2022, on elevated trading volume.

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    My estimated loss from trading in NIO ADS between August 2020, 2020 and present is:
    Up to $10,000$10,001 - $50,000$50,001 - $100,000Over $100,000

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    Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $127 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.