Vietnamese automaker VinFast, a subsidiary of Vietnam's largest conglomerate Vingroup, recently confirmed that its U.S. business maintained normal operations and faced no lawsuits, after it was rumored to be sued by two U.S. private law firms.
Some rumors about VinFast were circulating on social media on Friday, claiming that two U.S. private law firms, namely Robbins Gelleer Rudman & Dowd and Pomerantz, were collecting information from clients to launch an investigation into the automaker’s possible violations of the U.S. securities law.
Via PR Newswire, a U.S.-based distributor of press releases, the law firms called on clients to provide evidence about VinFast executives' failure to announce important information or their statements that caused misunderstanding among investors.
In response, Ho Ngoc Lam, head of Vingroup’s Legal Department and vice general director for legal affairs at VinFast, confirmed the normal operations of the automaker in the U.S.
VinFast always ensures that its information is provided transparently for investors in the U.S., Lam said and added that filing lawsuits remained a normal and frequent practice in the U.S.
“We’ve stayed prepared for getting involved in possible lawsuits since we launched our business in the U.S. market,” Lam said.
Commenting on the issue, experts said that these two law firms’ move to call on clients to jointly sue VinFast does not mean that VinFast had violated regulations or had been sued in the U.S.
The move was said to be a common practice adopted by law firms in the U.S. or some other countries to find potential clients.
Such law firms will target major companies or listed ones, find some reasons to launch a class-action lawsuit, and then make press releases over the issue to find new customers.
VinFast was founded in 2017. It owns a smart car manufacturing factory in Hai Phong City, northern Vietnam with an automation rate of 90 percent.
In March this year, VinFast announced the opening of its store in Rennes, marking its presence in the West of France and furthering its expansion rollout in European markets. This is the third VinFast store in France and the 11th in Europe.
The Vietnamese automaker made its debut on the Nasdaq Global Select Market in August this year.