The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of Texas on behalf of those who acquired Microvast Holdings, Inc. (“Microvast” or the “Company) (NASDAQ: MVST) securities during the period from October 19, 2022 through November 20, 2023, inclusive. Investors have until February 5, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In October 2022, the United States Department of Energy (“DOE”) conditionally selected Microvast for a proposed $200 million grant to help fund a proposed polyaramid separator production facility. On May 22, 2023, Reuters reported the DOE would not award Microvast the grant. In a call with congressional staff that evening, the DOE confirmed negotiations with Microvast concerning the grant had been cancelled. The DOE stated it would not comment publicly on why it decided to cancel negotiations with any applicant. This news came after months of political fervor over the Company’s alleged ties to China. On this news, the price of Microvast shares declined by $0.80 per share, or approximately 36.4%, from $2.20 per share to close at $1.40 on May 23, 2023.
On November 21, 2023, at approximately 9:00 a.m., J Capital Research published a report on Microvast alleging that the Company knew the grant had been rescinded for months prior to Reuters reporting but failed to inform investors. The report alleged further that the majority of MVST’s sales may be fake, that Chinese customers account for 57% of revenue in 2023 but drone footage shows the Company’s Chinese factory shows almost no activity, that the Company has disappeared from Chinese procurement lists, and that the Company’s reported backlog was dubious. On this news, the price of Microvast shares declined by $0.32, or approximately 24.62%, from $1.30 per share to close at $0.98 on November 21, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) there was a reasonable likelihood that Microvast would not be awarded the Grant after due diligence was performed; (ii) negotiations had ceased and the grant rescinded; (iii) the Company misrepresented the nature and profitability of its businesses and partnerships; and (iv) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Microvast securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
