Girard Sharp LLP is investigating potential claims on behalf of investors who purchased or otherwise acquired VinFast Auto Ltd. f/k/a Black Spade Acquisition Co. (NASDAQ:VFS, VSFWW) stock.
If you purchased or acquired VinFast (VFS) securities and experienced losses, please fill out our form or call (866) 981-4800 for a free consultation.
Investors File Lawsuit After VinFast Auto Stock Crashes Over 79%
Headquartered in Vietnam, VinFast describes itself as “an innovative, full-scale mobility platform focused primarily on designing and manufacturing premium EVs (electric vehicles), e-scooters, and e-buses.” Since going public through a merger with a special purpose acquisition company (SPAC or blank check company) in August 2023, the price of VinFast’s common shares has declined by approximately 79%.
On April 12, 2024, a VinFast investor filed a class action lawsuit against the Company and certain of its current and former directors and officers in the United States District Court for the Eastern District of New York (Case No. 24-cv-02750). The plaintiff alleges violations of the Securities Act of 1933 and Securities Exchange Act of 1934 and seeks to represent a class of investors who purchased or otherwise acquired VinFast securities between August 15, 2023 and January 17, 2024 and/or traceable to the offering documents for the securities issued in connection with the SPAC merger.
The lawsuit specifically alleges that “(i) VinFast lacked sufficient capital to execute its purported growth strategy; (ii) VinFast would be unable to meet its 2023 delivery targets; (iii) accordingly, VinFast had overstated the strength of its business model and operational capabilities, as well as its post-merger business and/or financial prospects; and (iv) as a result, the offering documents and defendants’ public statements…were materially false and/or misleading and failed to state information required to be stated therein.”
On October 15, 2023, Bloomberg published an article entitled “VinFast to Expand Into Southeast Asia, Raise More Capital.” This article revealed, according to the lawsuit, that “the Company would need to raise ‘a lot of capital’ in order to fuel its global expansion plans and would ‘rely on [financial] support from parent company Vingroup JSC and its founder Pham Nhat Vuong in the next 18 months.’” On this news, the price of VinFast common shares fell more than 18%, according to the lawsuit.
Then, on January 18, 2024, according to the lawsuit, VinFast disclosed that it had delivered 34,855 EVs during 2023, falling short of its delivery target of 40,000-50,000 EVs. The disclosure led to a further decline in the price of VinFast common shares, as alleged by plaintiff.
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