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Li Auto Inc. Investors Notice: Class action lawsuit filed on behalf of investors; the Portnoy Law Firm
Globe Newswire 2-Jul-2024 1:32 PM
Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, July 02, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Li Auto Inc. ("Li Auto" or the "Company") (NASDAQ:LI) investors that a shareholder filed a class action on behalf of persons and entities that purchased or otherwise acquired Li Auto securities between February 26, 2024 and March 20, 2024.
Li Auto operates in the energy vehicle market in the People's Republic of China and designs, develops, manufactures, and sells smart electric vehicles.
Li Auto investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-682-9993 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors' options for pursuing claims to recover their losses.
The action alleges that, throughout the Class Period, Li Auto failed to disclose to investors that: (i) Li Auto had overstated the demand for its vehicles and the efficacy of its operating strategy in launching the Li MEGA; (ii) accordingly, the Company was unlikely to meet its Q1 2024 vehicle deliveries estimate; and (iii) the foregoing, once revealed, was likely to have a material negative impact on the Company's financial condition.
The complaint alleges that on March 31, 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." 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—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 the Company would focus on creating a product market fit by idea validation and product refinement. Further, the Company 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.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm's founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
