$21 Billion China Electric Car Maker Li Auto Faces Class Action Lawsuit for Misleading Investors Leading to Losses by Overstating Demand of Vehicles Including Li Mega Minivan for 2024 Q1
24th May 2024 | Hong Kong
China electric car maker Li Auto (24/5/24: $21 billion market value) is facing a class action lawsuit for misleading investors leading to losses by overstating demand of vehicles including for Li Mega Minivan for 2024 Q1. Announcement (23/5/24): “The lawsuit seeks to recover losses on behalf of Li Auto Inc. investors who were adversely affected by alleged securities fraud between February 26, 2024 and March 20, 2024 … … The filed complaint alleges that defendants made false statements and/or concealed that: (i) Li Auto had overstated the demand for its vehicles and the efficacy of its operating strategy in launching its battery electric minivan, Li MEGA; (ii) accordingly, the Company was unlikely to meet its Q1 2024 vehicle deliveries estimate; (iii) the foregoing, once revealed, was likely to have a material negative impact on the Company’s financial condition; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.” In 2021, Li Auto IPO on Hong Kong Exchange (HKEX) in a primary-dual listing, dropping 0.8% from IPO Price of HKD 118 to HKD 117 on day 1 of trading (12/8/21) with a market capitalization of $29 billion. In the Hong Kong IPO, Li Auto raised $1.5 billion with the dual primary listing in Hong Kong allowing qualified Chinese investors to invest through Stock Connect linking mainland Chinese and Hong Kong markets. A secondary listing in Hong Kong requires at least 2 financial years of good regulatory compliance on another qualifying exchange. In August 2020, Li Auto raised $1.09 billion in its IPO on NASDAQ, with the shares rising 39.1% in its 1st week of trading and turning founder Li Xiang into a billionaire (estimated net worth of $5.5 billion). (IPO ~ Initial Public Offering)
“ $21 Billion China Electric Car Maker Li Auto Faces Class Action Lawsuit for Misleading Investors Leading to Losses by Overstating Demand of Vehicles Including Li Mega Minivan for 2024 Q1 “
China Electric Car Li Auto IPO in Hong Kong, Drops 0.8% on Day 1 with Market Value of $29 Billion
13th August 2021 – China electric car company Li Auto has IPO on Hong Kong Exchange (HKEX) in a primary-dual listing, dropping 0.8% from IPO Price of HKD 118 to HKD 117 on day 1 of trading (12/8/21) with a market capitalization of $29 billion. In the Hong Kong IPO, Li Auto raised $1.5 billion with the dual primary listing in Hong Kong allowing qualified Chinese investors to invest through Stock Connect linking mainland Chinese and Hong Kong markets. A secondary listing in Hong Kong requires at least 2 financial years of good regulatory compliance on another qualifying exchange. In August 2020, Li Auto raised $1.09 billion in its IPO on NASDAQ, with the shares rising 39.1% in its 1st week of trading and turning founder Li Xiang into a billionaire (estimated net worth of $5.5 billion). (IPO ~ Initial Public Offering)
Li Auto, Founded by Li Xiang
Li Auto was founded in 2015 by Li Xiang as Beijing CHJ Information Technology Co in April 2015. Also known as Lixiang Automotive, the Chinese electric car maker produces premium smart electric SUVs.
After the IPO, founder and CEO Li Xiang (Age 40) has an estimated net worth of $5.5 billion. Li Xiang is a serial entrepreneur and is also the founder of computer information platform pcpop.com and Autohome. Autohome Inc is a car internet platform and is listed on NASDAQ with a market capitalisation of $9.8 billion (13/8/20).
In August 2020, Li Auto raised $1.09 billion in its IPO on NASDAQ, with the shares rising 39.1% in its 1st week of trading and turning founder Li Xiang into a billionaire. Read More: Li Auto IPO on NASDAQ
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