| COMPANY |
Li Auto Inc. |
| COURT |
United States District Court for the Eastern District of New York |
| CASE NUMBER |
24-cv-03470 |
| JUDGE |
The Hon. Vera M Scanlon |
| CLASS PERIOD |
February 26, 2024 through May 20, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JULY 9, 2024.
If you have suffered losses and would like to discuss your rights, please fill out this form or you may contact Jonathan Naji, Esq. at (484) 270-1453 or via e-mail at info@ktmc.com.
Case Background:
On March 21, 2024, Li Auto issued a press release disclosing that, "[d]ue 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." Additionally, Li Auto stated that the “Li MEGA,” the company’s newly launched first battery electric vehicle model, had an operating strategy that was "mis-paced," noting that operations were planned as if the model had already entered the "scaling phase" of sales-that is, the phase focusing mainly on customer acquisition, team building, and operational efficiency for sustainable growth-while it was still in the early "validation" period, during which Li Auto would focus on creating a product market fit by idea validation and product refinement. Further, Li Auto stated that it will revert to the validation phase of sales by shifting its focus toward its core user group, target sales to cities with stronger purchasing power, and then will look to expand to a broader user base.
On this news, Li Auto's American Depositary Share ("ADS") price fell $2.55 per ADS, or 7.48%, to close at $31.53 per ADS on March 21, 2024.
Then, on May 20, 2024, before the market opened, Li Auto issued a press release announcing its unaudited financial results for the quarter ended March 31, 2024. In the report, Li Auto announced that its gross profit was “RMB5.3 billion (US$731.9 million) in the first quarter of 2024, representing an increase of 38.0% from RMB3.8 billion in the first quarter of 2023 and a decrease of 46.0% from RMB9.8 billion in the fourth quarter of 2023.”
On this news, Li Auto’s ADS price fell $3.18 per ADS, or 12.77%, to close at $21.71 per ADS on May 20, 2024.
The complaints allege that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Li Auto had overstated the demand for its vehicles and the efficacy of its operating strategy in launching the Li MEGA, Li Auto’s first battery electric vehicle model; (2) accordingly, Li Auto was unlikely to meet its Q1 2024 vehicle deliveries estimate; (3) the foregoing, once revealed, was likely to have a material negative impact on Li Auto’s financial condition; and (4) as a result, Li Auto’s public statements were materially false and misleading at all relevant times.
What is a Lead Plaintiff?
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.