PHILADELPHIA, April 16, 2024 (GLOBE NEWSWIRE) -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against VinFast Auto Ltd. (“VinFast” or the “Company”) (NASDAQ: VFS) f/k/a Black Spade Acquisition Co. (“Black Spade”) on behalf of purchasers of VinFast securities between August 15, 2023 and January 17, 2024, inclusive (the “Class Period”).
Investor Deadline: Investors who purchased or acquired VinFast securities during the Class Period may, no later than June 11, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at jmaro@bm.net or (267) 637-3176, or Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015 or CLICK HERE.
VinFast, headquartered in Vietnam, describes itself as “an innovative, full-scale mobility platform focused primarily on designing and manufacturing premium EVs (“electric vehicles”), e-scooters, and e-buses.” On May 12, 2023, VinFast announced that it had entered into a business combination (the “Merger”) with Black Spade, which purportedly “runs a global portfolio consisting of a wide spectrum of cross-border investments, and consistently seeks to add new investment projects and opportunities to its portfolio.”
Leading up to and following the Merger, VinFast repeatedly represented that the Company was focused on “achieving operational efficiency and technological integration” and “continuously improv[ing] [its] processes to deliver world-class products.” Indeed, in the Offering Documents for the Merger and in other public statements, the defendants misrepresented and/or 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; and (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.
On October 15, 2023, Bloomberg published an article entitled “VinFast to Expand Into Southeast Asia, Raise More Capital.” The article discussed the Company’s plans to aggressively move into Southeast Asian markets and revealed that, according to VinFast’s Chief Executive Officer, the Company would need to raise “a lot of capital” in order to fuel its global expansion plans and would rely on its parent company for financial support for the next 18 months.
On this news, VinFast’s 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 Fourth Quarter 2023 deliveries. The press release revealed that the Company 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 the Company’s disappointing announcement.
On this news, VinFast’s shares 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 the Company’s first post-Merger closing stock price of $37.06 per share on August 15, 2023.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. 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.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
jmaro@bm.net
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
aabramowitz@bm.net
