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Investors Launch Class Action Lawsuit Against Li Auto for Alleged Securities Violations


Leo Gonzalez

May 18, 2024 - 00:27 am


Investors Notified About Class Action Against Li Auto for Securities Law Violations

RADNOR, Pa., May 17, 2024 - In a significant development for investors, the prestigious law firm Kessler Topaz Meltzer & Check, LLP has announced the filing of a securities class action lawsuit. The legal action was initiated in the prestigious United States District Court for the Eastern District of New York and is directed against Li Auto Inc. ("Li Auto") (NASDAQ: LI). Officials at the firm indicate that the lawsuit stems from alleged transgressions of federal securities laws by Li Auto, which encompass falsifications and omissions of vital information in the context of the company’s business operations and future projections. The purported failure of Li Auto to truthfully engage with the public has reportedly led to considerable financial damages for the company's shareholders.

The lawsuit establishes a deadline for the lead plaintiff, slated for July 9, 2024. Shareholders who have incurred losses from Li Auto investments are urged to step forward. For those looking to learn more or to join the legal cause, information is readily accessible by clicking here or by visiting Kessler Topaz Meltzer & Check, LLP's case details page at

In related communications, attorney Jonathan Naji, Esq. of Kessler Topaz is available to be contacted by interested parties. Potential claimants can reach out to Mr. Naji at (484) 270-1453 or via email at [email protected] with any queries or for further assistance.

Li Auto’s Misplaced Business Tactics Result in Losses

Scrutiny is mounting as particulars emerge about the alleged misconduct that forms the basis of the lawsuit. On March 21, 2024, Li Auto released a statement that took shareholders by surprise. It significantly downgraded its initial vehicle delivery estimates for the first quarter of 2024 to a range of 76,000 to 78,000 vehicles, a steep fall from the previously anticipated 100,000 to 103,000 vehicles. Market analysts pay close attention to such forecasts as they often reflect the company’s expected performance and broader demand for their product.

Not only this but Li Auto revealed strategic missteps with its Li MEGA—a newly introduced first battery electric vehicle model—acknowledging a misaligned operational plan. The company admitted to optimistically executing a scaling phase strategy, which is commonly focused on obtaining a broad customer base, establishing a cohesive teamwork environment, and enhancing operational efficiency to support sustainable growth. However, this approach seemingly was enacted prematurely while the Li MEGA was still in the formative 'validation' period—where efforts typically concentrate on market adaptation, product refinement, and establishing product-market fit before scaling.

The news of this operational miscalculation and revised forecasts resulted in Li Auto's American Depositary Share (ADS) taking a steep dive. On the day of the announcement, the ADS price plummeted by $2.55 per ADS—or 7.48%—eventually closing at $31.53 per ADS. This sudden drop not only reflected the immediate market reaction to the news but also underscored the potential depth of Li Auto's strategic misjudgments.

Legal Recourse for Affected Investors

Investors in Li Auto who have watched their investments shrink have a finite window until July 9, 2024, to consider becoming a lead plaintiff. This position is not a passive title—it is a role that puts the investor at the forefront of the litigation process, representing the interests of all members within the class action lawsuit. The lead plaintiff, or possibly a small collective of investors with the most substantial losses, typically directs the attorneys to work in the best interests of all affected by the alleged misconduct. Serving as a lead plaintiff, however, is not requisite for potential recovery—it remains a personal choice.

Those interested in registering for the case can do so by reaching out to Kessler Topaz Meltzer & Check, LLP or by filing online through their website. The firm is currently inviting any investors who have endured significant financial harm to get in touch directly for additional details. As part of this outreach, the complaint against Li Auto can be reviewed under the title Banurs v. Li Auto Inc., et al., Case No. 24-cv-03470, as filed in the United States District Court for the Eastern District of New York. Compliance with the court's directives and ensuring the legal process is both fair and methodical is of utmost importance to the prosecuting firm.

Interested parties who wish to sign up for the case can do so here.

Who Qualifies to Be a Lead Plaintiff?

The designation of a lead plaintiff has a special significance within the context of class action litigation. It is they who carry the onus of decision-making and direct the lawsuit on behalf of the collective interests of the class members. To be considered suitable, a lead plaintiff should not only represent the largest financial interest in the repercussions of the case but should also best embody the characteristics of the affected group of investors. Those appointed to this central role also bear the responsibility of selecting counsel, who are expected to be deemed sufficient and exemplary by the court. The option to lead the litigation comes with no obligation, and one's eligibility for restitution is independent of their choice to be named as the lead plaintiff.

Expertise of Kessler Topaz Meltzer & Check, LLP

Kessler Topaz Meltzer & Check, LLP commands significant acclaim for their effective pursuit of class actions both in state and federal courts across the United States and globally. Their reputation for legal prowess precedes them as they have successfully amassed billions of dollars for victims of fraudulent practices and other transgressions by corporations. The overriding mission of Kessler Topaz is to safeguard the interests of investors, consumers, employees, and other victims of dishonesty and wrongdoing among businesses and their entrusted fiduciaries. Potential plaintiffs and the general public should be aware that the complaint in the current action was not filed by Kessler Topaz Meltzer & Check, LLP. Detailed knowledge concerning Kessler Topaz Meltzer & Check, LLP and its breadth of legal services is available by visiting the firm's informative website at

Open Lines of Communication at Kessler Topaz

For further insights or to initiate legal proceedings, Jonathan Naji, Esq. of Kessler Topaz Meltzer & Check, LLP stands ready to provide support. With ample experience and a dedication to addressing corporate malpractices, the team at Kessler Topaz, anchored by their offices at 280 King of Prussia Road, Radnor, PA 19087, invites direct communication. Prospective clients may consider reaching out to the firm or to Mr. Naji personally at (484) 270-1453 or by directing inquiries via email to [email protected].

It's important for audiences in various jurisdictions to recognize that this information may qualify as attorney advertising. While past case results do not guarantee or predict similar outcomes in future proceedings, they speak to the skill and experience of the attorneys involved.

The source of this press release is Kessler Topaz Meltzer & Check, LLP. It is important for readers considering legal action to know that past outcomes in legal cases do not guarantee similar results. Each case has its unique factors and must be evaluated on its own merits.

For those impacted by Li Auto's operational and communicational missteps, this action represents an opportunity to seek reclamation. As the lawsuit unfolds, the legal expertise and exhaustive efforts of Kessler Topaz Meltzer & Check, LLP will be central to the pursuit of justice and potential recovery for aggrieved investors.

The unfolding litigation against Li Auto Inc. thus serves as a critical reminder of the importance of transparent and accurate disclosures for publicly-traded companies. It is through legal avenues such as this class action lawsuit that investors have a chance to combat corporate misrepresentation and work toward rectifying the financial injustices they have suffered.