Zeekr faces investigation over alleged securities fraud.

• Zeekr Intelligent Technology Holding Limited investigated for securities fraud. • Reuters reports that Zeekr inflated sales to hit targets. • Cars insured before sale to book sales early under Chinese regulations. • Dealers and buyers interviewed for investigation. • Pomerantz LLP advises investors to contact Danielle Peyton.

Zeekr Intelligent Technology Holding Limited (ZK), a subsidiary of Geely Automobile Holdings Limited, is under scrutiny following allegations of securities fraud and unlawful business practices. The investigation, led by Pomerantz LLP, is based on Reuters' report that Zeekr inflated sales figures to meet aggressive targets. According to the report, Zeekr arranged for cars to be insured before they were sold to buyers, enabling early sales registration under Chinese industry car registration practices [1].

The Reuters investigation revealed that Zeekr exploited a loophole in China's vehicle registration rules. According to the report, the company insured vehicles before they were sold to consumers, allowing it to record sales once a vehicle was insured, even if it hadn't been delivered. This tactic was employed to hit monthly and quarterly targets [1].

The investigation by Pomerantz LLP, a premier firm in corporate and securities litigation, is ongoing. The firm is investigating claims on behalf of investors of Geely Automobile Holdings Limited. Investors are advised to contact Danielle Peyton at Pomerantz LLP for more information [2].

Zeekr's parent company, Geely Automobile Holdings Limited, has seen a sharp decline in the value of its securities following the Reuters report. The company is scheduled to be delisted from the NYSE by the fourth quarter of 2025, following its merger with Geely [1].

Meanwhile, Zeekr's retail sentiment on Stocktwits has remained in the 'bearish' territory over the last 24 hours, with chatter remaining at 'low' levels. This reflects investor concerns and skepticism surrounding the company's financial practices [1].

As the investigation continues, investors and financial professionals should closely monitor the developments surrounding Zeekr. The company's ability to navigate these allegations will significantly impact its stock performance and overall market standing.

References:
[1] https://stocktwits.com/news-articles/markets/equity/nio-zeekr-xpeng-clock-growth-in-july-ev-deliveries-while-li-auto-takes-hit/chr3UPpRdbQ
[2] https://www.prnewswire.com/news-releases/investor-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-geely-automobile-holdings-limited---gelyf-gelyy-302512743.html