VinFast denies being sued in US

By Minh Son   November 17, 2023 | 11:38 pm PT
VinFast denies being sued in US
A VinFast VF7 electric car on display at an event. Photo by VnExpress/Luong Dung
A VinFast representative has unequivocally denied that the company is being sued in the U.S.

The representative did not mince their words in stating that the firm is "not being sued."

The statement came in response to public rumors of a lawsuit after two U.S. law firms launched investigations into potential information disclosure violations at the company.

Robbins Geller Rudman & Dowd LLP announced Friday that the firm was investigating whether VinFast Auto Ltd violated U.S. securities laws by making false statements and failing to disclose material information to investors.

After announcing its US listing August 14, VinFast’s ordinary shares traded as high as $82.35 per share. But they subsequently plunged 92%, down to $6.17 as of Nov. 15.

The law firm has since invited VinFast investors who suffered losses to submit reports on the matter.

Another US law firm, Pomerantz LLP, is also investigating claims on behalf of VinFast investors. Pomerantz has also invited those with information to come forward.

Since the investigations were announced, VinFast’s parent company Vingroup has continued to see its share prices plumet. They closed down 6.4% Friday, hitting their lowest point since Nov. 7.

However, Ho Ngoc Lam, Vingroup deputy director of legal matters, said that legal actions are normal in the U.S., and the company had readied itself for such situations when it began operations in this country.

The fact that the two law firms are investigating VinFast does not mean that VinFast is being sued, she said, adding that the company is continuing its normal operations in the U.S.

The company always strives to disclose information to investors transparently, Lam stated.

She also pointed out that other major companies in the US, such as electric vehicle maker Tesla and software firm Amplitude, have also faced similar developments in the past when legal firms tried to find plaintiffs to initiate lawsuits against major brands.

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