EHang(EH) Prnewswire·2024-01-18 17:30Core Viewpoint - EHang Holdings Limited is facing legal scrutiny due to allegations of misleading statements regarding its business partnerships and pre-orders, which have resulted in significant investor losses [2][3]. Group 1: Legal Investigation - Faruqi & Faruqi, LLP is investigating potential claims against EHang and has set a deadline of February 2, 2024, for investors to seek the role of lead plaintiff in a federal securities class action [2]. - The complaint alleges that EHang and its executives violated federal securities laws by making false statements about partnerships with companies like United Therapeutics, DHL, and Vodafone, which have reportedly abandoned their deals [2]. - The lawsuit claims that EHang misrepresented the financial viability of entities that placed pre-orders for its aircraft, leading to materially false and misleading statements about its business operations [2]. Group 2: Market Reaction - Following the release of a report by Hindenburg Research on November 7, 2023, which claimed that over 92% of EHang's reported pre-orders were based on non-viable deals, the price of EHang's American Depositary Shares fell by 13.06 [3]. Group 3: Class Action Details - The lead plaintiff in the class action will be the investor with the largest financial interest who is also typical of class members, and any member can move the court to serve as lead plaintiff [4]. - Faruqi & Faruqi encourages individuals with information regarding EHang's conduct, including whistleblowers and former employees, to come forward [4].