Chinese automaker Li Auto faces a class action lawsuit from US investors suffering losses.
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The lawsuit claims the firm overstated the demand of its vehicles, including its Li Mega minivan.
The lawsuit alleges: “Li Auto disclosed that ‘due to 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 the previous vehicle delivery outlook of between 100,000 and 103,000 vehicles.’”
It also alleged the firm had engaged in securities fraud:
“Specifically, Defendants failed to disclose to investors that:
(1) Li Auto had overstated the demand for its vehicles and the efficacy of its operating strategy in launching the Li MEGA;
(2) accordingly, the Company was unlikely to meet its Q1 2024 vehicle deliveries estimate;
(3) the foregoing, once revealed, was likely to have a material negative impact 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.”
