Electric Vehicle Maker NIO Shareholders Get Class Action Status

NIO Inc. will face a class action from investors alleging that the electric vehicle maker misled them about its manufacturing capabilities, a federal judge in New York said.

Judge Nicholas G. Garaufis on Tuesday granted class status to investors who sued the Shanghai-based automaker. The judge previously consolidated three separate shareholder suits making similar claims.

He ruled that plaintiffs’ claims warranted class certification because millions of shares were sold and traded during the class period in question, and the representatives leading each subclass invested in NIO due to the alleged misrepresentations, making them well-suited to represent the class members.

The ...