Gasgoo Munich- On March 13, Faraday Future (FF) announced it has launched formal legal action against suspected illegal short-selling and the dissemination of false or misleading information to manipulate the market for profit. The company is moving forward with evidence collection, regulatory complaints, and litigation preparation.
Image Source: FF
FF stated that an internal investigation identified Hua Qixin and his associates as suspected sources of false statements and misleading content, allegedly coordinated with trading activities. These actions appear designed to distort market perception, damage the company's reputation, and negatively impact its stock price and shareholder value.
To safeguard shareholder interests, FF is rolling out substantive legal measures against the alleged illegal shorting and market manipulation. First, the company has sent legal notices to relevant platforms, formally demanding the preservation of evidence and cooperation with the investigation.
Second, FF has retained international law firm Paul Hastings LLP to evaluate its legal options. The company has initiated regulatory complaint procedures, including preparing materials for a potential filing with the U.S. Securities and Exchange Commission, as well as laying the groundwork for potential lawsuits in the U.S. and/or China.
Meanwhile, FF has engaged a specialized law firm to advance these legal efforts. Preliminary litigation materials have been completed, while evidence gathering, fact-finding, and discovery processes are ongoing to ensure full preparation for formal litigation.
Finally, responding to shareholder requests and bolstering investor protection, FF is soliciting relevant clues and evidence from the public. Individuals or entities with information regarding alleged illegal short-selling, malicious dissemination of false information, or market manipulation are encouraged to contact the company's Chinese investor relations email. All valid leads will be handled with strict adherence to legal protocols.
FF emphasized its adherence to the core philosophy of "Shareholders First," maintaining a zero-tolerance stance against actions that harm the company, mislead the market, or infringe on investor rights. The automaker pledged to continue using all necessary legal and regulatory tools to uphold fair market order and protect the interests of the company and its shareholders.
