Pomerantz Law Firm Announces Filing of Class Action Against VinFast Auto Ltd. and Some Officers

NEW YORK, April 12, 2024 /PRNewswire/ — Pomerantz LLP announces that a class action lawsuit has been filed against VinFast Auto Ltd . (“VinFast” or the “Company”) f/k/a Black Spade Acquisition Co., (“Black Spade”) (NASDAQ : VFS) and certain officials. Class action, filed United States District Court of the Eastern District of New Yorkand filed under 24-cv-02750, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or acquired VinFast securities: (a) pursuant to and/or pursuance of the Offering Documents (defined below); in connection with the merger (the “Merger”) completed August 14, 2023 and between the Company, Black Spade, and Nuevo Tech Limited, a Cayman Islands an exempted company and a wholly-owned subsidiary of the Company (the “Merging Combination”); and/or (b) between August 15, 2023 and January 17 2024, both dates inclusive (the “Risk Period”). Plaintiff pursues claims against Defendants under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”).

If you are a shareholder who purchased or otherwise acquired VinFast securities during the Class Period, you have up to June 11, 2024 asking the Court to appoint you as the Lead Plaintiff of the class. A copy of the Complaint may be obtained at www.pomerantzlaw.com. To discuss this step, get in touch Danielle Peyton in (email protected) or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those inquiring by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.

(Click here for information on joining the class action)

VinFast describes itself as “an innovative and full-scale mobility platform focused primarily on the design and manufacture of premium EVs (“electric vehicles”), e-scooters and e-buses.” It was founded and has its headquarters VietnamThe company has since expanded its sales and operations into other markets, including Southeast Asia, North Americaand Europe. Prior to the Merger, the Company operated as a publicly traded special purpose acquisition company, or a development stage company that does not have a specific business plan or purpose or has indicated that its business plan is to engage in a merger or acquisition with an unknown company or companies, another entity, or person.

Turn on May 122023, VinFast announced that it has entered into a business combination with Black Spade, which allegedly “operates a global portfolio that includes a broad spectrum of cross-border investments, and is constantly looking to add new projects and investment opportunities to its portfolio.”

Turn on June 152023, VinFast filed a registration statement (the “Registration Statement”) on Form F-4 with the SEC in connection with the Merger, which, after several amendments, was declared effective by the SEC regarding July 28, 2023.

It is also on July 28, 2023The Company filed a joint prospectus and proxy statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”) on Form 424B3 with the SEC in connection with the Merger, which incorporated and formed a part of the Registration Statement. .

Turn on August 14, 2023The Company completed the Merger in which, among other things, Merger Sub merged into Black Spade, with Black Spade surviving the transaction as a wholly owned subsidiary of the Company.

Turn on August 15, 2023The Company’s common stock and warrants began public trading on the Nasdaq International Select Market (“NASDAQ”) under the ticker symbols “VFS” and “VFSWW,” respectively.

Leading up to and following the Merger, VinFast repeatedly represented that the Company aimed to “achieve operational efficiency and technology integration” and “continue to improve(ing) (its) processes to deliver world-class products.” In fact, the Company pointed out that it has capabilities such as “Comprehensive System of Movement and Strategic Focus on High Growth Segments” and “Demonstrated Speed ​​to Market and Ability to Execute.” In particular, the Company indicated that it aimed to complete its long-term growth strategies by, in part, “continuing (to) develop (developing) (its) international footprint in areas where it (i) expect(ed) high (electric vehicle ( “EV) “)) growth demand,” and said that it expected “(d)vehicular contributions to be between 40,000 and 50,000 vehicles in 2023.”

The Offering Documents were prepared negligently and, as a result, contained false statements of material fact or omitted to mention other important facts to make the information provided not misleading and were not prepared in accordance with the laws and regulations governing their preparation. Additionally, throughout the Class Period, Defendants made false and misleading statements about the Company’s business, operations and prospects. In particular, the Offering Documents and the Defendants made false and/or misleading statements and/or failed to disclose that: (i) VinFast lacked sufficient capital to implement its purported growth strategy; (ii) VinFast will not be able to meet its 2023 delivery targets; (iii) accordingly, VinFast overestimates the strength of its business model and its ability to operate, as well as its post-Merger business and/or its financial prospects; and (iv) as a result, Defendants’ Release Documents and public statements throughout the Class Period were false and/or misleading and failed to state the information required to be stated therein.

Turn on October 152023, Bloomberg published an article titled “VinFast Expands Into Southeast Asia, Raises More Capital.” The article discussed the Company’s plans to move into Southeast Asian markets, starting with Indonesiaand reveal that, according to VinFast’s Chief Executive Officer Le Thi ThuyThe company would need to raise “substantial capital” to continue its international expansion plans and “will depend on (financial) support from parent company Vingroup JSC and its founder. Pham Nhat Vuong in the next 18 months.”

With this news, VinFast’s share price fell $1.45 per share, or 18.17%, closing hours 6.53 dollars for stock on October 16, 2023.

Then, continue January 18, 2024, VinFast issued a press release announcing its Q4 2023 shipments. The press release revealed that the Company delivered a total of 34,855 EVs in 2023, falling short of its annual delivery target of 40,000-50,000 units. In response, several market analysts commented on the Company’s disappointing announcement. For example, Barrons published an article titled “Vinfast Carmaker Vinfast Misses 2023 EVs Sales Target” in Vietnam which noted that VinFast “hoped to compete with EV giants such as Tesla” and “listed on the Nasdaq in August, making headlines around the world when when his count rose and then fell.”

With this news, VinFast’s share price fell $0.13 per share, or 2.25%, closing hours $5.64 for stock on January 18, 2024representing a total decrease of 84.78% from the Company’s first post-Merger price $37.06 for stock on August 15, 2023 (the “Initial Closing Price”).

As of the time this Complaint was filed, VinFast’s common stock was trading below its Initial Closing Price and continues to trade below its original value from the Merger, to the detriment of investors.

As a result of the Defendants’ wrongful acts and omissions, and the rapid decline in the market value of the Company’s securities, the Plaintiff and other Risk participants have suffered substantial loss and damage.

Pomerantz LLP, with offices in New York, Chicago, An angel, London, Parisand Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities, and antitrust litigation. It was founded by the late Abraham L. Pomerantz, known as the head of the class action bar, Pomerantz pioneered the field of collateral class actions. Today, more than 85 years later, Pomerantz continues in the tradition he started, fighting for the rights of bail victims. fraud, breach of fiduciary duty, and corporate misconduct. The company has obtained billions of dollars in damage awards on behalf of class members. Take a look www.pomlaw.com.

Advertising lawyer. Previous results do not guarantee the same results.

CONTACT:
Danielle Peyton
Pomerantz LLP
(email protected)
646-581-9980 ext. 7980

SOURCE Pomerantz LLP