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Chinese electric vehicle company, Nio Inc. (NYSE:NIO) announced today that an independent review of allegations made by a short seller that is now substantially complete found they were not substantiated.
The report, issued by the short-seller firm Grizzly Research LLC on June 28, attempted to outline how NIO, through an unconsolidated entity, committed fraud by falsely inflating revenue and net income pertaining to its BaaS business. The report also accused CEO Bin Li of association with fraudulent activities in the past.
Shortly after the publication of the report, an independent committee of the board of directors, consisting of independent directors Mr. Denny Ting Bun Lee, Mr. Hai Wu, and Ms. Yu Long, was formed to oversee an independent internal review regarding the key allegations made in the Short Seller Report.
Nio posted on its investor page that “The Internal Review is now substantially complete. Based on findings of the Internal Review, the Independent Committee has concluded that these allegations were not substantiated.”
