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Passenger Drone Firm EHang Asks Court to Toss Securities Dispute

June 27, 2022, 7:26 PM

EHang Holdings Ltd. investors who say they were misled about regulatory approvals are “piggybacking on an unsubstantiated short seller report,” so the case should be tossed, the company told a federal judge in New York.

The investors’ securities fraud complaint “doubles down” on the short seller report’s “baseless and self-serving arguments,” according to a memo filed in support of the passenger drone company’s motion to dismiss in the US District Court for the Southern District of New York.

Investors accuse EHang of touting regulatory approvals that didn’t actually allow for passengers and faking a sales relationship with its purported primary ...