Faruqi & Faruqi, LLP investigates claims

NEW YORK, May 8, 2024 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against VinFast Auto Ltd. (“VinFast” or the “Company”) (NASDAQ: VFS) f/k/a Black Spade Acquisition Co. (“Black Spade”) and reminds investors of the June 11, 2024 deadline to serve as lead plaintiff in a lawsuit to pursue the federal securities class action lawsuit filed against the company.

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson encourages investors who suffered losses of more than $100,000 in VinFast to contact him directly to discuss their options

If you purchased or acquired securities in VinFast between (a) pursuant to and/or traceable to the Offering Documents (defined below) issued in connection with the merger (“Merger”) dated August 14, 2023 by and between Black Spade and Nuevo Tech Limited, a Cayman Islands exempt company and wholly owned subsidiary of the Company (“Merger Sub”); and/or (b) between August 15, 2023 and January 17, 2024, both dates inclusive (the “Class Period”). and would like to discuss your legal rights, call Faruqi & Faruqi Partners Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). For more information you can also click here: www.faruqilaw.com/VFS.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The company has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

The offering documents were prepared negligently and therefore contained untrue statements of material facts or omitted to state other facts necessary to ensure that the statements made were not misleading and were not prepared in accordance with the rules and regulations applicable to their preparation . In addition, defendants made materially false and misleading statements about the Company’s business, operations, and prospects throughout the Class Period. Specifically, the Offering Documents and Defendants made false and/or misleading statements and/or failed to disclose that: (1) VinFast did not have sufficient capital to implement its purported growth strategy; (2) VinFast would be unable to meet its 2023 delivery targets; (3) Accordingly, VinFast had overstated the strength of its business model and operating capabilities and its business and/or financial prospects following the Merger; and (4) as a result, defendants’ offering documents and public statements throughout the Class Period were materially false and/or misleading and contained no information contained therein.

On October 15, 2023, Bloomberg published an article titled “VinFast looks to expand into Southeast Asia, raise more capital.” The article discussed the company’s plans to aggressively move into Southeast Asian markets, starting with Indonesia, and revealed that the company would need to raise “a lot of capital” to advance its global expansion plans, according to VinFast Chief Executive Officer Le Thi Thu Thuy and will “rely on the (financial) support of the parent company Vingroup JSC and its founder Pham Nhat Vuong over the next 18 months.”

On this news, VinFast’s common stock price fell $1.45 per share, or 18.17%, to close at $6.53 per share on October 16, 2023.

Then, on January 18, 2024, VinFast issued a press release announcing its deliveries for the fourth quarter of 2023. The press release shows that the company delivered a total of 34,855 electric vehicles in 2023, significantly missing its annual delivery target of 40,000 to 50,000 units. In response, several market analysts commented on the company’s disappointing announcement. For example, Barrons published an article titled “Vietnamese automaker Vinfast misses electric vehicle sales target in 2023,” which stated that VinFast “hoped to compete with electric giants like Tesla” and “listed on the Nasdaq in August was noted, which made headlines around the world.” his rating shot up and then plummeted.”

On this news, VinFast’s common stock price fell $0.13 per share, or 2.25%, to close at $5.64 per share on January 18, 2024, an aggregate decline of 84.78% from the first The Company’s post-Merger closing price of $37.06 per share as of August 15, 2023 (the “Initial Closing Price”).

At the time of filing this complaint, VinFast’s common stock was trading significantly below its original closing price and continues to trade below its original merger value, harming investors.

The court-appointed lead plaintiff is the investor with the greatest financial interest in the relief sought by the class, who is appropriate and typical of the class, and who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may request the Court to serve as lead plaintiff through counsel of their choice, or may elect to do nothing and remain an absent class member. Your ability to participate in any recovery will not be affected by the decision to serve as lead plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about VinFast’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

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