GIC Sues Chinese EV Maker for Allegedly Inflating Revenue
Singapore sovereign wealth fund GIC has sued Chinese EV maker NIO over alleged inflation of revenues.
GIC has sued Chinese electric vehicle maker NIO over allegedly exaggerating its revenue and profit, according to a «Straits Times» report citing court documents. The lawsuit was filed on August 28 in the US District Court for the Southern District of New York, naming Nio and its two founders – CEO William Li, also known as Bin Li, and ex-chief financial officer Wei Feng who left the firm in July 2024 – as defendants.
GIC is estimated to have bought 54.5 million American depositary shares of NIO between 11 August 2020, and 11 July 2022.
Grizzly Research
According to NIO, the legal pursuit stems from false allegations made by short-selling firm Grizzly Research against the EV firm in a report released in June 2022, claiming that its net income was inflated by around 95 percent through sales related to a related party, Wuhan Weineng Battery Asset Co.
NIO denied the allegations in 2022 and the report was «not substantiated» and «without merit».
