VinFast faces investigation over potential securities law violations

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VinFast faces investigation over potential securities law violations
Credit: © Reuters.

HANOI - VinFast Auto Ltd (NASDAQ: VFS ), a prominent automobile and e-scooter manufacturer, is currently under legal scrutiny following a significant stock market plunge.

The company merged with Black Spade Acquisition Co. on August 14, 2023, which initially led to a surge in share prices, reaching a high of $93.00 by August 28, 2023. However, a dramatic downturn in the company's fortunes saw its stock value plummet to $4.59 on October 25, 2023.

The sharp decline in VinFast's market value has prompted legal action from a law firm investigating the company for possibly disseminating materially false and misleading statements regarding its financial stability and future business prospects. This development has raised concerns among shareholders who have experienced losses due to the stock's volatility. Those affected are being advised to seek guidance from the Shareholders Foundation to explore their legal options in response to potential violations of securities laws.

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