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VinFast Hit with Lawsuit Amidst Security Misrepresentation Claims

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Lauren Miller

May 16, 2024 - 15:56 pm

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VinFast Auto Ltd. Faces Class Action Lawsuit Amidst Allegations of Misrepresentation

NEW YORK, May 16, 2024 – A legal storm is brewing as Pomerantz LLP discloses the commencement of a class action lawsuit against VinFast Auto Ltd., formerly known as Black Spade Acquisition Co., and some of its senior executives. The lawsuit was filed in the prestigious chambers of the United States District Court for the Eastern District of New York, indexed as 24-cv-02750. The plaintiff represents a cohort of purchasers of VinFast securities who have been affected by the alleged misinformation propagated by the company and its executives.

The class action has a specific audience - it targets all individuals and institutions, excluding the Defendants, who invested in VinFast securities. This includes those who made their investments either in the prospectus orbiting the merger that was completed on August 14, 2023, among VinFast, Black Spade, and Nuevo Tech Limited, a Cayman Islands exempted company, and also those who traded in VinFast securities between August 15, 2023, and January 17, 2024.

Action Deadline and Participation Information

The clock is ticking for shareholders who have incurred losses due to their investments in VinFast during the mentioned timeframe. They have until June 11, 2024, to make a formal request for the court to name them the Lead Plaintiff for the class. The lawsuit details are publically accessible and can be reviewed at the official website of Pomerantz Law, which can be found at www.pomerantzlaw.com. Additionally, those interested in discussing the lawsuit can establish contact with Danielle Peyton via email at [email protected] or call 646-581-9980 or the toll-free number 888.4-POMLAW, extension 7980. For a comprehensive discussion, inquirers are encouraged to include their mailing address, contact number, and the amount of shares bought in their communications.

Allegations of Deceptive Business Practices

In the legal purview, VinFast describes itself as a vanguard in mobility innovation, chiefly in the crafting and sales of high-end electric vehicles (EVs), as well as electric scooters and buses. Although the firm points to Vietnam as its birthplace and home base, it claims expansion into regions such as Southeast Asia, North America, and Europe. Preceding the contentious merger, Black Spade, the former entity, was identified as a publicly traded special purpose acquisition company (SPAC).

Details emerged on May 12, 2023, when VinFast publicized its strategic affiliation with Black Spade, which was portrayed as a cultivator of global investments. Shortly after, on June 15, 2023, VinFast presented a registration statement to the SEC for the merger sanctioning process. Following several edits, the statement received the SEC's approval on July 28, 2023. The same day, the conglomerate filed a joint prospectus and proxy statement as part of the Registration Statement, setting the path for the merger to take full effect.

Promises and Pitfalls: VinFast’s Unrealized Growth Strategy

Following the merger consummation on August 14, 2023, and the dawn of VinFast’s shares trading on the NASDAQ under the ticker "VFS", the automaker repeatedly avowed its commitment to operational efficiency and technological prowess. The Company extensively boasted about its mobilization capabilities and strategic market expansion, particularly emphasizing an ambitious delivery target of 40,000 to 50,000 EVs for the fiscal year 2023.

However, allegations suggest negligence in the preparation of the Offering Documents, as they reportedly harbored materially untrue statements and omitted crucial information, leading to a potentially misleading perception of their content. Furthermore, during the Class Period, Defendants are accused of fabricating false and misleading statements concerning the company's operational and financial outlook. Specifically, it is alleged that the company and the Defendants erroneously represented VinFast's growth capabilities, financial solvency, and the feasibility of meeting its delivery targets for 2023.

Market Turbulence and Investor Losses Following Disclosures

The fragility of VinFast's promises came to light on October 15, 2023, as detailed by a Bloomberg article titled "VinFast to Expand Into Southeast Asia, Raise More Capital." The piece highlighted VinFast’s capital-raising requirement for its aspirations in Southeast Asian markets, which would heavily rely on financial backing from its parent company, Vingroup JSC, and its founder, Pham Nhat Vuong. The revelation caused VinFast's ordinary share price to tumble by 18.17% the following day, stirring concerns among shareholders and market spectators alike.

Further disheartening news struck on January 18, 2024, when VinFast made public its Q4 2023 deliveries, which fell significantly short of its projected figures. The announcement prompted analysts to mark the company's performance with skepticism, as underlined by an article in Barrons discussing the shortfall. VinFast shares continued to decline, spotlighting the stark descent from the company's initial post-merger value.

The Aftermath of Shareholder Losses

The culmination of events led to a precipitous devaluation of VinFast's securities, leaving investors with stinging financial injuries. In the pursuit of redress for their losses and in seeking accountability for the wrongful acts and omissions purported by the Defendants, the class represented by the Plaintiff has suffered considerable financial damages.

Pomerantz LLP: A Bastion of Class Action Litigation

On the plaintiff's end, Pomerantz LLP flaunts a rich heritage as one of the leading practices in corporate, securities, and antitrust class litigation. The firm was founded by Abraham L. Pomerantz, esteemed as a pioneer in securities class actions. With more than eight decades of legal prowess and offices situated in global hubs including New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, Pomerantz maintains its commitment to championing the rights of victims of securities fraud and corporate malpractices. The firm's track record boasts billions recovered in damages for aggrieved class members and can be further scrutinized at www.pomlaw.com.

Seeking Legal Recourse

As the class action lawsuit unfolds, investors who believe they have been misled by VinFast's pronouncements during the contentious period are urged to take legal action. The available time to step forward as a Lead Plaintiff is limited, thereby prompt action is advised. Pomerantz LLP has extended its expertise and resources for those seeking advice and potential inclusion in the lawsuit, with attorney advertising in effect and a disclosure that past results do not guarantee future outcomes.

Contact information for further queries and legal assistance has been provided as: Danielle Peyton Pomerantz LLC Email: [email protected] Phone: 646-581-9980 ext. 7980

This news piece aims to serve as an information resource for readers to comprehend the gravity of the lawsuit against VinFast Auto Ltd., and to assist aggrieved parties in making informed decisions regarding participation in the class action.

Pomerantz LLP stands at the forefront, leading the legal battle in pursuit of justice and compensation for those shareholders who have endured the financial repercussions of VinFast's alleged misrepresentations. As the case gains traction, the investor community will be closely monitoring the evolution of this legal engagement and the potential ramifications for corporate accountability and transparency in securities trading.

**Disclaimer: This is a news article reporting on the filed lawsuit by Pomerantz LLP against VinFast Auto Ltd. This article is for informational purposes only and does not serve as legal advice. Investors are encouraged to consult with qualified legal counsel for guidance related to the class action lawsuit against VinFast Auto Ltd.

For those affected and looking to understand more about the lawsuit against VinFast Auto Ltd., or who wish to join the class action, please visit the link provided below:

Click here for information about joining the class action

(Source: Pomerantz LLP)