Robbins LLP is Investigating the Allegations that VinFast Auto Ltd. (VFS) Made False Statements in its Offering Documents in Support of its Merger
Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired VinFast Auto Ltd. Inc. (NASDAQ: VFS) securities: (a) pursuant to the Offering Documents issued in connection with the August 14, 2023 merger among VinFast, Black Spade, and Nuevo Tech Ltd.; or (b) between August 15, 2023 and January 24, 2024. VinFast describes itself as “an innovative, full-scale mobility platform focused primarily on designing and manufacturing premium EVs (“electric vehicles”), e-scooters, and e-buses.”
The Allegations
According to the complaint, prior to the merger, VinFast operated as a SPAC. On August 14, 2023, VinFast consummated the merger, and on August 15, 2023, the Company began trading under the ticker symbols VFS and VFSWW.
Leading up to and following the merger, Vinfast touted the Company’s potential, indicating that it aimed to accomplish its long-term growth strategies by, in part, “continu[ing] growing [its] global footprint into areas where [it] expect[ed] high [electric vehicle (“EV”)] demand growth,” and stated that it expected “[d]eliveries of vehicles to be between 40,000 and 50,000 vehicles in FY2023.”
However, on January 18, 2024, VinFast announced its Q4 2023 deliveries, which was short of its previously stated target. In response, VinFast’s shares fell over 2%, to close at $5.64 per share, representing a total decline of 84.78% from the Company’s first post-merger closing stock price of $37.06 per share on August 15, 2023.
The plaintiff alleges that the Offering Documents and defendants failed to disclose that: (i) VinFast lacked sufficient capital to execute its purported growth strategy; (ii) VinFast would be unable to meet its 2023 delivery targets; (iii) accordingly, VinFast had overstated the strength of its business model and operational capabilities, as well as its post-Merger business and/or financial prospects; and (iv) as a result, the Offering Documents and Defendants’ public statements throughout the class period were materially false and misleading.
What Now: You may be eligible to participate in the class action against VinFast Auto Ltd. Shareholders who want to serve as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
