Electric carmaker Nio is facing class action lawsuits in the US filed by its shareholders for alleged false statements and misleading information.
The investors complained that the Chinese firm misled investors about a planned new manufacturing factory when it was going public in 2018. While investors were made to believe Nio would build its own manufacturing facility in Shanghai, it terminated the plan in 2019 and continued to rely on other auto manufacturers, according to the lawsuit documents.
Investors also complained that Nio failed to disclose the impact of the Chinese authority’s decision to reduce subsidies for EV cars and the slower-than-expected delivery of its flagship EV SUV models.
A Nio spokesperson said the allegations are unfounded and the company will defend itself in court, sina.com reported.
Baidu president of new business Zhang Yaqin has also been named as a defendant in the suit against Nio because Zhang served as a director between June and September 2018, the report said.