PHILADELPHIA, March 19, 2019 /PRNewswire/ -- Berger Montague announces that class action lawsuits have been filed against Nio, Inc. ("Nio" or the "Company) (NIO) and several of its executives on behalf of those who purchased or acquired the American Depositary Shares ("ADSs") of Nio between September 12, 2018 and March 5, 2019, inclusive (the "Class Period"). Nio designs, manufactures and sells electric vehicles in China, the U.S., Germany and the U.K.
If you wish to discuss the claims against Nio or have any questions concerning your rights or interests, please contact Barbara A. Podell, Esq. or Michael C. Dell'Angelo, Esq. at (215) 875-3000 or visit bergermontague.com. If you purchased or acquired Nio ADSs during the Class Period and suffered damages, you may, no later than May 13, 2019, request that the Court appoint you lead plaintiff of the proposed Class. You do not need to be a lead plaintiff to share in any possible recovery to the Class.
The lawsuits allege that Nio and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Nio would not be building its own manufacturing plant and would instead continue to rely on JAC Auto to manufacture its vehicles; (2) reductions in government subsidies for electric cars and accelerated deliveries at the end of 2018 in anticipation of subsidy reductions in 2019 would materially impact Nio's sales; (3) Nio had been experiencing manufacturing difficulties with its "made-to-order" business model for at least six months; and (4) as a result, Defendants' statements about Nio's business, operations, and prospects were materially false and misleading at all relevant times.
On March 5, 2019, after the close of the market, Defendants shocked investors when they disclosed that for January 2019, Nio delivered only 1,805 ES8s, a decline of over 45% from December 2018, and for February 2019, Nio delivered only 811 ES8s, a decline of over 55% from January 2019 deliveries. Further, Nio stated that it expected between 3500 and 3800 ES8 sales for the quarter ending March 31, 2019 and just 884 to 1184 sales in March 2019, representing a decline of more than 52% over fourth quarter 2018 sales.
Nio's CFO explained the reasons that Nio's ES8 deliveries materially declined: "accelerated deliveries made in the end of last year in anticipation of EV subsidy reductions in China in 2019;" Nio had been experiencing material manufacturing difficulties with its "made-to-order" business model for at least six months; and Nio would not build its own manufacturing plant.
On March 6, 2019, Nio's ADSs declined from a closing price on March 5, 2019 of $10.19 per ADS, to close at $8.01 per ADS, a decline of $2.01 per ADS or over 21%, on heavy trading volume of over 73 million ADSs. On March 7, 2019, Nio's ADSs declined an additional $0.92 per ADS or over 11% to close at $7.09 per ADS.
Berger Montague, with offices in Philadelphia, Minneapolis and Washington, D.C., has been a pioneer in securities class action litigation since its founding in 1970, has represented individual and institutional investors for over four decades and serves as lead counsel in courts throughout the United States.
Barbara A. Podell/Michael C. Dell'Angelo
1818 Market Street, Suite 3600
Philadelphia, PA 19103
(215) 875-3000/(800) 424-6690
SOURCE Berger Montague
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