
Microvast allegedly promised sustained high margins and a 2025 Huzhou capacity milestone while investors later saw a 34.2% MVST drop after revenue, margin, and inventory impairment results diverged from those expectations.
NEW YORK, July 29, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in Microvast Holdings, Inc. (NASDAQ: MVST) that a class action has been filed on behalf of shareholders who purchased securities between April 1, 2025 and March 16, 2026. Find out if you could qualify to recover your per-share losses.
MVST shares declined $0.79 per share, or 34.2%, to close at $1.52 on March 17, 2026, after Microvast reported Q4 revenue of $96.5 million versus a $136.4 million consensus estimate, gross margin of 1.0%, and a $32.5 million ESS inventory impairment. The last day to move for lead plaintiff is September 21, 2026.
The Alleged Promise: Higher Margins and 2025 Capacity
The lawsuit maintains that Microvast presented investors with a growth story built around a 2025 revenue outlook of $450 million to $475 million, a gross margin target initially set at 30%, and the Huzhou Phase 3.2 expansion expected to support additional production capacity before year-end 2025.
Plaintiffs assert that the Company later raised its gross margin outlook to a range of 32% to 35%, allegedly reinforcing the impression that product mix, efficiency gains, and capacity expansion remained on track.
The Alleged Reality: Delays, Impairment, and a Margin Collapse
The complaint contends that investors were not fully informed that customer rollout delays, inventory management issues, and specialized ESS components manufactured for a customer without related 2025 revenue allegedly undermined the margin story. The action further alleges that Huzhou Phase 3.2 did not meet the previously stated Q4 2025 production timing.
"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. Here, the complaint alleges that Microvast's margin and production-capacity assurances were contradicted by later reported results, including a $32.5 million impairment and a 1.0% quarterly gross margin." said Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP.
Promise vs. Actual: By the Numbers
- Microvast guided investors to 2025 revenue of $450 million to $475 million while later reporting Q4 2025 revenue of $96.5 million.
- Consensus expectations for Q4 revenue were $136.4 million, allegedly magnifying the market impact of the reported shortfall.
- Gross margin guidance moved from 30% to 32%, then to a 32% to 35% range, before Q4 gross margin was reported at 1.0%.
- The Company attributed part of the margin decline to a $32.5 million inventory impairment tied to specialized ESS components.
- Huzhou Phase 3.2 was repeatedly described as targeted for Q4 2025 qualified production, while later disclosures pointed to production beginning in 2026.
What the Lawsuit Alleges About the Gap
The lawsuit maintains that the gap between Microvast's public expectations and reported results caused investors to purchase MVST shares at allegedly inflated prices. When the Company reported the revenue miss, ESS inventory impairment, and margin decline, the market allegedly repriced MVST shares, resulting in substantial investor losses.
Submit your information here or call (212) 363-7500.
ABOUT LEVI & KORSINSKY, LLP — Over the past 20 years, Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders. The firm has extensive expertise in complex securities litigation and a team of over 70 employees. For seven consecutive years, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report. Investors who suffered losses have until September 21, 2026 to seek appointment as lead plaintiff.
Frequently Asked Questions About the MVST Lawsuit
Q: What is the MVST class action lawsuit about? A: A securities class action has been filed against Microvast Holdings, Inc. (NASDAQ: MVST) alleging materially false and misleading statements between April 1, 2025 and March 16, 2026. Shares fell approximately 34.2% after the Company reported Q4 2025 revenue of $96.5 million, gross margin of 1.0%, and a $32.5 million ESS inventory impairment. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: Who is eligible to join the MVST investor lawsuit? A: Investors who purchased MVST stock or securities between April 1, 2025 and March 16, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What specific misstatements does the MVST lawsuit allege? A: The complaint alleges Microvast made materially false or misleading statements regarding its ability to achieve high gross margin targets, complete the Huzhou Phase 3.2 expansion by the end of 2025, and manage inventory and customer rollout risks during the Class Period. When later financial and operational results were disclosed, the stock price declined sharply.
Q: What court was the MVST class action filed in? A: The case was filed in the United States District Court for the Southern District of Texas, Houston Division, governed by the Private Securities Litigation Reform Act of 1995.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What documents do I need to provide for a review? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my MVST shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.
CONTACT:\
Levi & Korsinsky, LLP\
Joseph E. Levi, Esq.\
Ed Korsinsky, Esq.\
33 Whitehall Street, 27th Floor\
New York, NY 10004\
Tel: (212) 363-7500\
Fax: (212) 363-7171
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SOURCE Levi & Korsinsky, LLP
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