(1) All persons and entities who purchased or otherwise acquired the American Depositary Shares (“ADSs”) of NIO Inc. (“NIO”) pursuant and/or traceable to the registration statement and prospectus issued in connection with NIO’s September 12, 2018 Initial Public Offering (“IPO”); and (2) all persons and entities who purchased or otherwise acquired NIO ADSs during the period from October 8, 2018 to March 5, 2019, both dates inclusive.[1]
This Notice was authorized by the United States District Court for the Eastern District of New York.
This Notice May Affect Your Rights. This Is Not Attorney Advertising. Please Read It Carefully.
This Notice is to advise Class Members of the pendency of the above-captioned action as a class action under Rule 23 of the Federal Rules of Civil Procedure and their rights with respect thereto. If you are a Class Member, your rights will be affected by this lawsuit, which is styled as In re NIO, Inc. Securities Litigation, Case No. 19-cv-01424-NGG-JRC (the “Action” or the “Lawsuit”), and which is now pending before the United States District Court for the Eastern District of New York (the “Court”).
The Court has determined that this lawsuit may proceed as a class action pursuant to Rule 23 of the Federal Rules of Civil Procedure. The purpose of this Notice is to inform you of how the lawsuit may affect your rights and what steps you may take. This Notice is not an expression by the Court of any opinions as to the merits of any claims or defenses asserted by either side in the Action. If you received this Notice in error and you are not a member of the Class, you do not need to take any action and your rights will not be affected.
WHAT IS THIS LAWSUIT ABOUT?
This is a securities class action against (a) NIO; (b) certain of NIO’s officers and directors: Bin Li, Louis T. Hsieh, Lihong Qin, Padmasree Warrior, Tian Cheng, Xiang Li, Hai Wu, Xiangping Zhong, and Zhaohui Li (the “Director and Officer Defendants”); and (c) the underwriters of NIO’s IPO: Morgan Stanley & Co. LLC, Goldman Sachs (Asia) L.L.C., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, UBS Securities LLC, and WR Securities, LLC, (the “Underwriters,” and together with NIO and the Director and Officer Defendants, the “Defendants”).
The Lawsuit alleges that NIO’s registration statement and prospectus (“Registration Statement”) for the IPO was false and misleading because it: (a) falsely stated that construction had started on NIO’s own manufacturing facility in Shanghai, China (the “Shanghai Facility”), when in actuality construction on the Shanghai Facility never commenced, and (b) failed to warn investors that the construction of the Shanghai Facility was contingent on NIO having sufficient cash and meeting sales expectations. The Lawsuit alleges that the alleged misrepresentations caused the price of NIO ADSs to be artificially inflated, and to decline when the alleged truth emerged, resulting in financial losses to those who purchased the ADSs at the inflated prices. Defendants have denied and continue to deny each and every allegation.
| WHAT ARE MY OPTIONS? | |
| DO NOTHING | Stay in this lawsuit. Await the outcome. Give up certain rights. By doing nothing, you keep the possibility of sharing in any recovery that may result from a trial or a settlement. However, you give up any right you may have to sue Defendants separately about the issues and claims being raised in this Action, and you will be bound by the outcome of this Action. |
| ASK TO BE EXCLUDED | Get out of this lawsuit. Get no benefits from it. Keep your rights. If you ask to be excluded from this lawsuit, you will not be bound by what the Court does in this case and will keep any rights you might have to sue Defendants separately about the same issues and claims being raised in this Action. If a recovery is later obtained in this case, you would not share in that recovery. Please note, if you decide to exclude yourself, you may be time-barred from asserting the claims covered by the Action by a statute of repose. |
[1] Excluded from the Class are (a) persons and entities who suffered no compensable losses; and (b) Defendants, the present and former officers and directors of NIO, members of such excluded persons’ immediate families and their legal representatives, heirs, successors, or assigns, and any entity in which any of the Defendants, or any person excluded under this subsection (b), has or had a majority ownership interest at any time.