Robbins Geller Rudman & Dowd LLP has announced that purchasers or acquirers of VinFast Auto Ltd. securities have until June 11, 2024, to seek appointment as lead plaintiff in the class action lawsuit against the company. The lawsuit, named Comeau v. VinFast Auto Ltd., charges VinFast and certain executives and directors with violations of the Securities Act of 1933 and/or Securities Exchange Act of 1934.
According to the allegations in the lawsuit, VinFast, an innovative mobility platform focused on designing and manufacturing electric vehicles, e-scooters, and e-buses, made false and/or misleading statements and failed to disclose certain information. It is alleged that VinFast lacked sufficient capital to execute its growth strategy and would be unable to meet its delivery targets for 2023.
Bloomberg published an article on October 15, 2023, revealing that VinFast would need to raise a large amount of capital to fuel its global expansion plans. This news caused the price of VinFast ordinary shares to fall by over 18%. Additionally, on January 18, 2024, VinFast disclosed that it fell short of its 2023 delivery targets. This announcement also resulted in a decline in the price of VinFast ordinary shares.
Investors who purchased or acquired VinFast securities during the specified period or in connection with the merger are eligible to seek appointment as lead plaintiff in the class action lawsuit. The lead plaintiff acts on behalf of all other class members and can select a law firm to litigate the case. Investors’ ability to recover potential losses is not dependent on being the lead plaintiff.
Robbins Geller Rudman & Dowd LLP is a leading complex class action firm specializing in securities fraud cases. The firm has recovered billions of dollars for investors and has launched a dedicated SPAC Task Force to protect investors in blank check companies.
Robbins Geller Rudman & Dowd LLP, a leading complex class action firm specializing in securities fraud cases, has announced that purchasers or acquirers of VinFast Auto Ltd. securities have until June 11, 2024, to seek appointment as lead plaintiff in the class action lawsuit against the company. VinFast, an innovative mobility platform focused on designing and manufacturing electric vehicles, e-scooters, and e-buses, is facing allegations of violating the Securities Act of 1933 and/or Securities Exchange Act of 1934.
According to the lawsuit, VinFast is accused of making false and/or misleading statements, as well as failing to disclose certain information. One of the key allegations is that VinFast lacked sufficient capital to execute its growth strategy and would be unable to meet its delivery targets for 2023.
These allegations gained further attention when Bloomberg published an article on October 15, 2023, revealing that VinFast would need to raise a large amount of capital for its global expansion plans. This news caused the price of VinFast ordinary shares to plummet by over 18%. Another blow to the company came on January 18, 2024, when VinFast disclosed that it fell short of its 2023 delivery targets. As a result, the price of VinFast ordinary shares experienced another decline.
The class action lawsuit aims to provide recourse for investors who purchased or acquired VinFast securities during the specified period or in connection with the merger. The lead plaintiff, selected from the class members, will act on behalf of others and choose a law firm to litigate the case. It’s important to note that investors’ ability to recover potential losses is not dependent on being the lead plaintiff.
In an industry where electric mobility is gaining traction, VinFast’s alleged financial shortcomings and failure to meet delivery targets present significant challenges. The company’s ability to raise capital for its expansion plans may impact its competitiveness in the market. Market forecasts for the electric vehicle industry show continued growth, but companies like VinFast may face increased scrutiny regarding their financial stability and ability to meet demands.
For more information about Robbins Geller Rudman & Dowd LLP and their involvement in the class action lawsuit against VinFast Auto Ltd., you can visit their official website here.