GIC yet to file lawsuit against Chinese electric vehicle manufacturer NIO, say sources

SINGAPORE: Earlier reports suggested that Singapore’s sovereign wealth fund, GIC, was preparing to initiate legal action against Chinese electric vehicle manufacturer NIO. However, sources have clarified that GIC has not yet filed a lawsuit against NIO or any of its executives. A document that recently circulated online appeared to indicate that a government investment company was initiating legal proceedings against NIO Group Chairman and CEO William Li, as well as former Chief Financial Officer Steven Feng. Subsequent reports, however, suggest that GIC does not currently plan to sue the individuals or the company but the documents were reportedly filed to safeguard the investment company’s interests and to preserve the option of pursuing class action litigation at a later stage if necessary. NIO has been embroiled in a class action lawsuit in the United States since 2022, with plaintiffs claiming that the company overstated its revenue and profits, thereby misleading investors. The ongoing lawsuit involves investors who purchased NIO’s listed securities between August 2020 and July 2022. As of now, no new legal action has been officially taken by GIC or any Singapore government-linked entity against NIO or its executives.