How common are snitching and lawsuits in the US?

According to Bloomberg , two major law firms, Robbins Geller Gelleer Rudman & Dowd and Pomerantz, have just announced that they are collecting information from clients to open an investigation into possible violations of US federal securities laws related to electric car company VinFast Auto.

The investigation will focus on whether Vietnamese electric carmaker VinFast (VFS), whose shares are listed on the US Nasdaq stock exchange, and some of VinFast's senior leaders made false and/or misleading statements or failed to disclose important information to investors.

In response to this information, a representative of Vingroup said that litigation in the US is completely normal and that they have always been ready to face this since deciding to conduct business activities in the US market.

According to this representative, VinFast is still operating completely normally in the US.

vuongvinfast khanhvnn2.jpg — *VinFast representative confirmed that the company is still operating completely normally in the US.*

Sharing on his personal page, a financial expert said that the investigation as stated by Robbins Geller is quite normal in the US. Therefore, stocks listed in the US will be better monitored for shareholders.

There are many people who look at stocks in the US market. They are lawyers, SEC regulators, and even short sellers.

In the US, there is a system of whistleblowers, so if there are any irregularities, someone will point them out. Then, the SEC will step in and fine the violating company.

Law firms will seek out clients to sue and if the business violates the law, it will be sued in the US market.

In such cases, assuming each investor claims 100 million VND in compensation and the verdict is in just one lawsuit, the amount of money lost/won in the lawsuit can be very large.

Investigations for evidence of violations and lawsuits in the US are quite common and have happened to many businesses. US securities laws are also stricter, along with the development of the world's largest stock market over the past hundreds of years.

Tesla's electric car company boss Elon Musk has been fined tens of millions of dollars for information that harmed shareholders, such as the case of posting information on Twitter in 2018.

In Vietnam, the law also has many forms of punishment for violations in the stock market. However, the difference in the US is that shareholders can join together to sue in the form of a class-action suit , as in the case of the two law firms mentioned above, which are looking into whether VinFast has violated the law or not.

Recently, there have been rumors in the US stock market that the SEC is using artificial intelligence (AI) to detect securities violations.

In Japan, using AI to scan social media to prevent price gouging has been around for a long time.

In Asia, there have been many cases of stocks rising and falling sharply. In Hong Kong, there was a case of stocks rising nearly 10,000%, thereby creating "paper billionaires" on the stock market.

VinFast drops sharply, capitalization returns to initial level VinFast shares fell for the second consecutive session, under selling pressure. Capitalization of billionaire Pham Nhat Vuong's car company returned to initial level despite information about building a factory in India.

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