Zeekr Investigated for Securities Fraud, Inflated Sales

• Bloomberg investigates Zeekr Intelligent Technology Holding Limited for securities fraud • Reuters reports Chinese electric vehicle brands inflated sales to hit targets • Documents and dealer interviews support allegations • Inflated sales booked using car registration practices • Pomerantz LLP leads class action against Zeekr and officers/directors

Bloomberg has launched an investigation into Zeekr Intelligent Technology Holding Limited (NYSE: ZK) for alleged securities fraud. The investigation comes on the heels of Reuters' reports that Chinese electric vehicle (EV) brands, including Zeekr, have been inflating sales to meet targets. Documents and dealer interviews support these allegations, suggesting that inflated sales were booked using car registration practices.

Zeekr Group, the world's leading premium new energy vehicle group, reported its second-quarter financial results on August 14, 2025. The company delivered 130,866 units, representing a 9.3% year-over-year increase and a 14.8% quarter-over-quarter increase. However, the investigation by Bloomberg and Reuters casts a shadow over these numbers.

The investigation alleges that Zeekr Group booked sales using car registration practices, a method that allows companies to register vehicles as sold even before they are delivered to customers. This practice, known as "channel stuffing," is a common tactic used to inflate sales figures and meet targets.

Pomerantz LLP, a prominent securities law firm, is leading a class action lawsuit against Zeekr and its officers/directors. The lawsuit alleges that Zeekr Group engaged in fraudulent and deceptive practices to inflate its sales figures, misleading investors and the public.

Zeekr Group's financial results for the second quarter of 2025 show a decrease in revenues and a net loss, which could be attributed to the ongoing investigation and the potential impact of inflated sales figures.

The investigation by Bloomberg and Reuters, along with the class action lawsuit by Pomerantz LLP, highlights the importance of transparency and accuracy in financial reporting. Investors and financial professionals should closely monitor the developments in this case and consider the potential impact on Zeekr Group's financial performance and stock price.

References:
[1] https://finance.yahoo.com/news/zeekr-group-reports-second-quarter-043000583.html