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As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) due to, inter alia, inventory management issues and delays in commercial vehicle rollouts by Microvast's customers, Defendants had overstated Microvast's ability to reach its margin targets; (ii) Defendants overstated Microvast's ability to complete the Huzhou Phase 3.2 expansion by the end of 2025; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.
On June 25, 2025, short seller Grizzly Research issued a report concerning Microvast, alleging that the Company "is fabricating a significant part of its business and capabilities", including, inter alia, by overstating the level of activity at its production facilities, including the Huzhou facility, and likewise overstating the prospective economic opportunities from its commercial partnerships. On this news, Microvast's stock price plunged during intraday trading, falling as much as $0.40 per share, or approximately 10.23%, before ultimately closing at $3.90 per share.
On August 1, 2025, Microvast announced the departure of its CFO, Defendant Schultz, just three months after he joined the Company. On this news, Microvast's stock price fell $0.30 per share, or approximately 9.93%, to close at $2.72 per share on August 4, 2025.
On November 10, 2025, Microvast issued a press release reporting its financial and operating results for the quarter ended September 30, 2025, in which it revealed that production following the Huzhou Phase 3.2 expansion would not begin until Q1 2026 – after repeatedly advising investors that the additional capacity associated with the expansion would be online by Q4 2025. On this news, Microvast's stock price fell $0.50 per share, or approximately 10%, to close at $4.48 per share on November 11, 2025.
On March 16, 2026, Microvast issued a press release reporting its financial and operating results for the quarter and year ended December 31, 2025, reporting that gross margin declined to approximately 1% for the quarter, down sharply from approximately 36% for the same period in the prior year, attributable to inventory impairment charges arising from "specialized ESS components", and revenue of $96.5 million for the quarter, representing a 15% year-over-year decrease and falling well short of the consensus estimate of $136.4 million. On this news, Microvast's stock price fell $0.79 per share, or 34.2%, to close at $1.52 per share on March 17, 2026.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Microvast's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Microvast class action, go to www.faruqilaw.com/MVST or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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Frequently Asked Questions (FAQ) for Investors Regarding the Microvast Securities Class Action Lawsuit:
What is the Microvast securities fraud lawsuit about?
Faruqi & Faruqi, LLP is investigating claims on behalf of investors in Microvast Holdings, Inc. (NASDAQ: MVST) arising from allegedly false and misleading statements made during the Class Period. The lawsuit alleges that Defendants overstated Microvast's ability to achieve its margin targets, purportedly concealing inventory management issues and delays in commercial vehicle rollouts by the Company's customers. The complaint further alleges that Defendants overstated Microvast's ability to complete its Huzhou Phase 3.2 expansion by the end of 2025, repeatedly advising investors that additional capacity would be online by Q4 2025 when production allegedly did not begin until Q1 2026. These alleged misrepresentations are said to have been revealed through a series of disclosures between June 2025 and March 2026, including a short seller report, an abrupt CFO departure, a delayed expansion announcement, and a fourth-quarter earnings release in which gross margin allegedly collapsed to approximately 1% from approximately 36% in the prior year period, with revenue falling well short of consensus estimates.
Who may be eligible to participate in the lawsuit?
Investors who purchased or otherwise acquired Microvast Holdings, Inc. (NASDAQ: MVST) securities between April 1, 2025 and March 16, 2026, inclusive, may be eligible to participate in this lawsuit. The class is not limited to those who seek appointment as lead plaintiff; any investor who purchased Microvast shares on the NASDAQ during the Class Period may potentially share in any recovery that may be obtained. Eligible investors are encouraged to review their trading records to determine whether their purchases fall within the specified Class Period. Participation in the litigation does not require investors to take on any active role in the case.
What is a lead plaintiff, and how can I seek appointment?
A lead plaintiff is a court-appointed representative who acts on behalf of all class members in directing the litigation, including working with counsel to make key decisions regarding case strategy and any potential settlement. Any member of the proposed class may move the court for appointment as lead plaintiff, but the role is not a prerequisite for sharing in any recovery the litigation may produce. The deadline to file a motion for appointment as lead plaintiff in this action is September 21, 2026. Investors who do not seek the lead plaintiff role may still be eligible to participate as class members and share in any recovery without taking any affirmative steps in the litigation.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Microvast securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
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Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310)
SOURCE Faruqi & Faruqi, LLP
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