Case Summary

Li Auto

NASDAQ: LI

Case Details

  • Banurs v. Li Auto Inc. et al.
  • Class Period:February 26, 2024 - March 20, 2024
  • Date Filed:May 10, 2024
  • Jurisdiction:U.S. District Court, Eastern District of New York
  • Docket Number: 1:24-cv-03470
  • Lead Plaintiff Deadline: July 9, 2024
Days Left to
Seek Plaintiff
46

Overview

A class action lawsuit has been filed against Li Auto, Inc (“Li Auto” or the “Company”) (NASDAQ: LI) and certain of the Company’s current and former senior executive officers alleging violations of the federal securities laws.  The Li Auto lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Li Auto securities between February 26, 2024, and March 20, 2024, both dates inclusive (the “Class Period”).  Investors have until July 9, 2024, to seek appointment as lead plaintiff of the Li Auto class action lawsuit.

Li Auto operates in the energy vehicle market in the People’s Republic of China and designs, develops, manufactures, and sells smart electric vehicles.  The Company’s product line includes multi-purpose vehicles and sport utility vehicles.  The main products include Li MEGA, a high-voltage battery electric vehicle; Li L9, a six-seat flagship family sport utility vehicle (“SUV”); Li L8, a six-seat family SUV; and Li L7, a five-seat flagship family SUV.

The Lawsuit alleges that on March 21, 2024, Li Auto issued a press release disclosing that due to lower-than-expected order intake, the Company expected 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.  In addition, the Company stated that the Li MEGA 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 – 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, the Company would focus on creating a product market fit by idea validation and product refinement.  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.

The Li Auto lawsuit alleges that Defendants, throughout the Class Period,  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; (2) accordingly, the Company was unlikely to meet its first quarter of 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, the Company’s public statements were materially false and misleading at all relevant times.

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If you purchased or otherwise acquired Li Auto securities between February 26, 2024, and March 20, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Li Auto lawsuit is July 9, 2024.

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