Recently, it was reported that Lawson Law Firm, a global investor rights law firm, recently announced that it has filed a class action lawsuit on behalf of securities buyers of Ideal Automobile Co., Ltd., and publicly solicited investors to participate in free class action lawsuits. The litigation period for this case is from February 26, 2024 to March 20, 2024. Investors who purchase Ideal Automobile stocks or options during this period and suffer significant investment losses can apply to the court before the deadline of July 9, 2024.
The lawsuit claims that the public statements of Ideal Automobile were significantly false and misleading at all relevant times, and that the company and some executives made false statements during the litigation period, violating securities laws and causing harm to investors. Including Ideal's exaggeration of market demand for vehicles and the effectiveness of operational strategies when launching its first electric vehicle model MEGA, which is unlikely to meet the expected delivery volume of vehicles in the first quarter of 2024. Investors have applied to the court to order the defendant to compensate for the losses caused by their illegal behavior, which led to a decline in stock prices. Upon checking the US and Hong Kong stock markets, it was found that from February 26 to March 20, the stock price of Ideal Automobile fell by about 30%.
In response to this, Ideal Automobile has confirmed the existence of relevant lawsuits and stated that the allegations are unfounded, and will do its best to protect the interests of the company and shareholders.
Industry insiders told reporters that such lawsuits are common in the United States. Typically, when a listed company's stock price drops, law firms organize investors to collectively initiate such lawsuits and claim compensation from the company. If investors in the US stock market believe that the price decline of their stocks or options may be caused by listed companies, such as any unfavorable news, being shorted, or other publicly available online information, they only need to contact the law firm engaged in related business to participate in US stock litigation and claim compensation.
In fact, a large number of Chinese companies that have gone public in the United States have become the targets of class action lawsuits by US stock investors. Public information shows that the total number of class action lawsuits against Chinese listed companies in the United States has exceeded 50, including companies such as Baidu, Tencent, and NIO.