On this news, VinFast’s shares declined 35 cents, or 11%, to close at $2.72 per share on April 17.
“The Q1 2024 press release showed continuing weakness in demand and difficulties in generating additional sales, contrary to prior representations … Less than a year after the SPAC merger, the truth concerning VinFast’s poor financial health was fully on display,” the suit states.
The suit claims VinFast and the individual defendants acted with scienter, or actual knowledge of wrongdoing or reckless disregard, and violated the Securities Act and the Exchange Act. Qian seeks damages with pre- and post-judgment interest.
Counsel for Qian declined to comment on the suit. A representative of VinFast did not immediately respond to requests for comment on Monday.
Qian is represented by Phillip Kim and Laurence M. Rosen of The Rosen Law Firm PA and Brian Schall of The Schall Law Firm.
Counsel information for VinFast and the individual defendants was not immediately available on Monday.
The case is Qian v. VinFast Auto Ltd. et al., case number 1:24-cv-03956, in the U.S. District Court for the Eastern District of New York.
