Chinese automaker Li Auto is facing a class action lawsuit that is causing losses to American investors.
The lawsuit alleges that the company overestimated demand for its vehicles, including the Li Mega minivan.
The lawsuit alleges: “Li Auto announced that ‘as a result of lower-than-expected order intake, the company now expects its vehicle deliveries for the first quarter of 2024 to be between 76,000 and 78,000 vehicles, revised from previous guidance for the delivery of vehicles between 76,000 and 78,000. 100,000 and 103,000 vehicles. ”
It also alleged that the company was guilty of securities fraud:
“Specifically, Defendants failed to disclose to investors that:
(1) Li Auto overestimated the demand for its vehicles and the effectiveness of its operational strategy when launching the Li MEGA;
(2) accordingly, the Company was unlikely to meet its vehicle delivery estimate in the first quarter of 2024;
(3) the foregoing, if it came to light, would be likely to have a material adverse effect on the Company’s financial condition; And
(4) As a result, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.”
“Li Auto faces US class action lawsuit over its Mega minivans” was originally created and published by Just Auto, a brand owned by GlobalData.
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