Li Auto Hit with Class Action Lawsuit Over Alleged Misleading Statements

A class action lawsuit has been filed against Li Auto Inc. alleging the company made false and/or misleading statements about its vehicle demand and operating strategy. The lawsuit seeks to recover damages for investors who purchased securities between February 26, 2024, and March 20, 2024.

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Nitish Verma
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Li Auto Hit with Class Action Lawsuit Over Alleged Misleading Statements

Li Auto Hit with Class Action Lawsuit Over Alleged Misleading Statements

A class action lawsuit has been filed against Li Auto Inc. (NASDAQ: LI) on behalf of investors who purchased securities between February 26, 2024, and March 20, 2024. The lawsuit alleges that Li Auto made false and/or misleading statements about its vehicle demand and operating strategy, resulting in damages to investors.

Why this matters: This lawsuit has significant implications for the electric vehicle industry, as it raises concerns about the accuracy of financial disclosures and the potential risks for investors. Furthermore, the outcome of this lawsuit may set a precedent for future cases involving alleged misleading statements by companies in the industry.

The lead plaintiff deadline for the class action is July 9, 2024. Investors who bought Li Auto securities during the Class Period may be entitled to compensation without payment of any out-of-pocket fees or costs. To serve as lead plaintiff, investors must move the Court no later than the July 9 deadline.

The lawsuit claims that Li Auto and certain of its executives violated federal securities laws by making materially false and/or misleading statements. Specifically, the defendants allegedly overstated the demand for Li Auto's vehicles and the effectiveness of its strategy for launching the Li MEGA, the company's first battery electric vehicle model. The complaint also alleges Li Auto was unlikely to meet its vehicle delivery estimate for the first quarter of 2024.

According to the lawsuit, once the true details about Li Auto's business and prospects were revealed, it was likely to have a material negative impact on the company's financial condition. As a result, the complaint argues that Li Auto's public statements were materially false and misleading at all relevant times.

The Rosen Law Firm, a global investor rights law firm, is representing investors in this class action. The firm encourages investors who purchased Li Auto securities during the Class Period to contact attorney Phillip Kim toll-free at 866-767-3653 or via email at caserosenlegal.com for information on the class action.

Li Auto is a Chinese electric vehicle manufacturer founded in 2015. The company specializes in designing and developing smart electric SUVs. In July 2020, Li Auto raised $1.1 billion in its U.S. initial public offering on the Nasdaq stock exchange.

The class action lawsuit against Li Auto seeks to recover damages for investors under the federal securities laws. The complaint alleges that the company made "false and/or misleading statements" about its vehicle demand and operating strategy, which resulted in losses for shareholders who purchased Li Auto securities during the Class Period. With a lead plaintiff deadline of July 9, 2024, the Rosen Law Firm is actively working with investors to pursue compensation through this class action.

Key Takeaways

  • A class action lawsuit has been filed against Li Auto Inc. (NASDAQ: LI) for alleged false statements.
  • The lawsuit claims Li Auto overstated vehicle demand and the effectiveness of its strategy.
  • The lawsuit seeks to recover damages for investors who purchased securities between Feb 26, 2024, and Mar 20, 2024.
  • The lead plaintiff deadline is July 9, 2024, and investors may be entitled to compensation.
  • The Rosen Law Firm is representing investors in this class action lawsuit.