GlobeNewswire News Room·2024-06-18 17:15Core Viewpoint - Li Auto Inc. is facing securities class action lawsuits for alleged violations of federal securities laws, including fraudulent misrepresentations and omissions regarding its business and operations, leading to significant investor losses during the class period from February 26, 2024, to May 20, 2024 [1]. Group 1: Allegations and Financial Impact - On March 21, 2024, Li Auto revised its vehicle delivery outlook for Q1 2024 to between 76,000 and 78,000 vehicles, down from a previous estimate of 100,000 to 103,000 vehicles, citing lower-than-expected order intake [3]. - The company acknowledged that its new battery electric vehicle model, "Li MEGA," had an operating strategy that was "mis-paced," indicating it was still in the early validation phase rather than the scaling phase [3]. - Following the March announcement, Li Auto's American Depositary Share (ADS) price dropped by $2.55, or 7.48%, closing at $31.53 [4]. - On May 20, 2024, Li Auto reported a gross profit of RMB5.3 billion (approximately $731.9 million) for Q1 2024, a 38.0% increase from RMB3.8 billion in Q1 2023 but a 46.0% decrease from RMB9.8 billion in Q4 2023 [4]. - After the May financial results announcement, Li Auto's ADS price fell by $3.18, or 12.77%, closing at $21.71 [4]. Group 2: Legal Proceedings and Investor Actions - The lead plaintiff deadline for the class action lawsuits is set for July 9, 2024, allowing affected investors to seek representation [2][5]. - Investors can choose to be appointed as lead plaintiffs or remain absent class members, with Kessler Topaz Meltzer & Check, LLP encouraging those who suffered significant losses to contact them for more information [5]. - The class action complaints against Li Auto are filed in the United States District Court for the Eastern District of New York under case numbers 24-cv-03470 and 24-cv-03725 [5].