Hesai Group (HSAI) Investigation

The investigation is focused on the propriety of Hesai’s disclosures about its financial reporting and news about its purported deal with Mercedes-Benz, which the latter has not yet been confirmed.

Blue Orca Capital published the results of its investigation into Hesai and raised serious concerns about Hesai’s disclosures, financial reporting, business operations and insider trading.

More specifically, Blue Orca concluded that Hesai is a “scam actively lying to investors, the Department of Defense, and a United States federal court[.]”

According to Blue Orca’s in-depth research, while Hesai has attempted to escape its designation as “‘a Chinese military company’ by insisting that it has no involvement with the Chinese military[]” “we found clear smoking-gun photographic and video evidence that Chinese military vehicles are outfitted with Hesai LiDAR systems.”

Blue Orca also said that it does not trust Hesai’s financial disclosures because, in part, revenues in its opinion “do not appear to be consistent with the purchasing volumes of its largest customer.” Blue Orca opined that despite Hesai’s recent claim that it had finally become profitable, “the only reason Hesai turned a ~$20 million net profit in Q4 2024 was because it received a one-time $20 million break fee payment from its largest customer, who undisclosed to customers, terminated its contract with Hesai.”

As to the Reuters reports of a deal with Mercedes-Benz on or about March 11, 2025, Blue Orca observed that “oddly, Mercedes did not confirm the deal” and “the Reuters article which identified Mercedes simply referred to an anonymous source.” Blue Orca also said with respect to the reported “deal” that “just a few weeks ago, the Mercedes Chief Technology Officer told investors that Mercedes will not use LiDAR in its advanced driving assistance systems to be offered in China this year because it was not necessary.”

Then, on March 13, 2025, after the price of Hesai shares skyrocketed over 33% on reports over the purported Mercedes-Benz deal, insiders and co-founders Li Yifan (CEO), Xiang Shaoqing (Chief Technology Officer), and Sun Kai (Chief Scientist) filed planned sales of their Hesai holdings totaling about $62.58 million.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the HSAI investigation about?

We are concerned about potential issues about Hesai’s transparency with investors.

WHAT SHOULD I DO?

I worked at HSAI. What should I do?

If you were an employee of HSAI, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in HSAI, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any HSAI investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.