Overview
- Singapore’s sovereign wealth fund sued Nio, CEO William Li and former CFO Steven Feng in August in the Southern District of New York for alleged securities fraud.
- GIC alleges Nio improperly booked more than $600 million of 2021 leased-battery sales upfront via Weineng, inflating results in violation of GAAP.
- The court placed the case on a temporary stay in early October because of overlap with an existing U.S. class action by investors.
- Nio rejects the accusations, citing an August 2022 independent board review that it says found the short-seller’s allegations unsubstantiated.
- Nio shares fell as much as about 13% in Hong Kong and nearly 10% in Singapore on Oct 16 after reports surfaced, then edged higher on Oct 17.