According to Bloomberg news, two law firms in the US, Robbins Gelleer Rudman & Dowd and Pomerantz, are collecting information from the public to initiate an investigation into alleged violation of laws committed by the automobile manufacturer, which entered the US bourse some months ago.
The law firms have called on investors to provide evidence to find out if VinFast and its high-ranking executives violated US laws by making false statements or statements which may have led to misunderstandings, or if they refused to reveal important information to investors.
VinFast has denied the news that VinFast is being sued in the US.
A representative of the electric vehicle manufacturer said filing lawsuits is a normal and frequent practice in the US, and that VinFast has been ready for involvement in possible lawsuits since the day it began doing business in the country.
The representative affirmed that VinFast is maintaining normal operations in the US.
A financial expert said initiating class action lawsuits is normal in the US. Thanks to the monitoring mechanism, shares are supervised well for investors’ benefits.
There are many supervisors in the market, who can include lawyers, managerial officers of the Securities and Exchange Commission (SEC) and short sellers as well.
The expert said this may be a form of customer search used by law firms in the US, under which law firms call on the public to collect materials and find a reason to launch a class action lawsuit. If proof about law violations are found, SEC will launch an investigation and punish violators.
In these cases, assuming that each investor claims VND100 million in compensation, and the verdict is within just one lawsuit, the amount of money could be very high.
The investigations to seek proof of violation are faced by many enterprises, especially ones with strong brands and fame. The laws in the US market are very stringent in order to regulate the world’s largest stock market.
Tesla’s owner, Elon Musk, was fined tens of millions of dollars for information causing damages to shareholders, such as information disclosure on Twitter in 2018.
In Vietnam, the laws also stipulate many forms of punishment for violators in the stock market. However, the difference between Vietnam and the US is that American shareholders can join forces to initiate class action suits, like the above mentioned case.