| COMPANY |
VinFast Auto Ltd. |
| COURT |
United States District Court for Eastern District of New York |
| CASE NUMBER |
24-cv-02750 |
| JUDGE |
TBD |
| CLASS PERIOD |
August 15, 2023 through January 17, 2024 |
| SECURITY TYPE |
Securities |
LEAD PLAINTIFF DEADLINE IS JUNE 11, 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:
A class action lawsuit has been filed on behalf of those who purchased or acquired VinFast Auto Ltd. (“VinFast”) (NASDAQ: VFS) common stock between August 15, 2023 and January 17, 2024, both dates inclusive (the “Class Period”).
On October 15, 2023, Bloomberg published an article entitled, “VinFast to Expand Into Southeast Asia, Raise More Capital,” which revealed that VinFast 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, VinFast's ordinary share price fell $1.45 per share, or 18.17%, to close at $6.53 per share on October 16, 2023.
Then, on January 18, 2024, VinFast issued a press release announcing its Q4 2023 deliveries. The press release revealed that VinFast delivered a total of 34,855 EVs in 2023, falling well short of its annual deliveries target of 40,000-50,000 units. In response, several market analysts commented on VinFast's disappointing announcement. For example, Barrons published an article entitled "Vietnamese Carmaker Vinfast Misses 2023 EVs Sales Target," which noted that VinFast was "hoping to compete with EV giants such as Tesla" and was "listed on the Nasdaq in August, hitting headlines around the world as its valuation skyrocketed and then crashed."
On this news, VinFast's ordinary share price fell $0.13 per share, or 2.25%, to close at $5.64 per share on January 18, 2024, representing a total decline of 84.78% from VinFast's first post-Merger closing stock price of $37.06 per share on August 15, 2023.
As of the time the complaint was filed, VinFast's ordinary shares were trading significantly below their first post-Merger closing stock price on August 15, 2023, and have continued to trade below their initial value from the Merger.
The complaint alleges that throughout the Class Period, and in the Offering Documents, Defendants made false and/or misleading statements and/or failed to disclose that: (1) VinFast lacked sufficient capital to execute its purported growth strategy; (2) VinFast would be unable to meet its 2023 delivery targets; and (3) accordingly, VinFast had overstated the strength of its business model and operational capabilities, as well as its post-Merger business and/or financial prospects.
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.