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NIO, Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired NIO Inc. (“NIO” or the “Company") (NYSE: NIO) securities between August 20, 2020 through July 11, 2022, both dates inclusive (the “Class Period”). Investors have until October 24, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
NIO manufactures and sells automobiles. The Company offers electric vehicles, parts, and battery charging services.
 
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"). On this news, the price of NIO American Depositary Shares ("ADSs" or "shares") declined by $0.59 per share, or approximately 2.5%, from $22.95 per share to close at $22.36 on June 28, 2022.
 
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 declined by $2.03 per share, or approximately 8.9%, from $22.60 per share to close at $20.57 on July 11, 2022.
 
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading and/or 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; (3) as a result of the foregoing, the Company's revenue and net loss were overstated; and (4) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
 

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