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11h ago

GIC Sues Nio Over Alleged Revenue Inflation as Shares Slide and Case Is Stayed

Nio says it will set up an independent committee to review the claims.

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Overview

  • The lawsuit was filed in August in the Southern District of New York against Nio, CEO Li Bin and former CFO Feng Wei.
  • GIC alleges Nio used affiliated firm Nio Battery Asset (Weineng) to book full battery-sale revenue upfront, with the complaint citing over $600 million recognized in 2021.
  • A judge stayed the case on Oct. 3 because it overlaps with a related 2022 lawsuit against Nio.
  • Nio stated in court filings that it will form an independent committee to investigate the allegations.
  • Shares fell sharply following the disclosures, with Singapore-listed stock down as much as 13.8%, Hong Kong closing 9.4% lower, and U.S. premarket trading off about 6%.