Robbins LLP Reminds Microvast Investors With Significant Losses of the Opportunity to Lead the Securities Fraud Class Action Against MVST
SAN DIEGO, Aug. 3, 2026 /PRNewswire/ -- Robbins LLP reminds investors that a securities class action has been filed on behalf of all persons and entities who purchased or otherwise acquired Microvast Holdings, Inc. (NASDAQ: MVST) securities between April 1, 2025 and March 16, 2026, inclusive (the "Class Period").
The lawsuit alleges that Microvast Holdings, Inc. misled investors about its ability to achieve targeted profit margins and complete the expansion of its Huzhou, China manufacturing facility on schedule.
Investors who purchased MVST securities during the Class Period and suffered losses may have legal rights. Investors seeking appointment as lead plaintiff must act by September 21, 2026.
For more information, submit a form, email attorney Aaron Dumas, Jr., or call (800) 350-6003.
What Is the Microvast Class Action About?
According to the complaint, Microvast represented that it was repositioning its business toward more profitable, higher-value opportunities and that its Huzhou Phase 3.2 manufacturing expansion would increase production capacity and be operational before the end of 2025.
The complaint alleges that Microvast also told investors to expect improving profit margins based on its strategic repositioning away from lower-margin business segments.
According to plaintiff, Microvast failed to disclose material information concerning its ability to achieve those objectives.
Specifically, the complaint alleges that:
- Microvast overstated its ability to achieve its margin targets;
- inventory management issues negatively affected the Company's financial performance;
- delays in commercial vehicle rollouts by Microvast's customers affected the Company's expected results; and
- Microvast overstated its ability to complete the Huzhou Phase 3.2 expansion by the end of 2025.
The lawsuit alleges that these undisclosed issues made Microvast's statements concerning its margins, production capacity, growth prospects, and financial outlook materially misleading.
What Happened to Microvast Stock?
According to the complaint, a series of disclosures revealed problems with Microvast's financial performance, production expansion, and customer demand. The final alleged corrective disclosure occurred on March 16, 2026, when Microvast reported financial and operating results for the quarter and year ended December 31, 2025.
Microvast reported that its gross margin had fallen to approximately 1%, compared with approximately 36% during the same period of the prior year. The Company attributed the decline in gross margin in part to inventory impairment charges related to specialized energy storage system ("ESS") components.
Microvast also reported quarterly revenue of approximately $96.5 million, a 15% year-over-year decline and significantly below the consensus estimate of approximately $136.4 million. According to the Company, the revenue decline was attributable in part to regulatory shifts in South Korea and delays in customer platform ramp-ups in Europe, the Middle East, and Africa.
Following the disclosure, Microvast's stock price fell $0.79 per share, or approximately 34.2%, to close at $1.52 per share on March 17, 2026.
Why Did MVST Stock Fall?
According to the complaint, MVST stock fell after Microvast disclosed financial results that allegedly revealed the impact of problems involving inventory, customer platform delays, and the Company's manufacturing and production outlook.
The March 16, 2026 disclosure included:
- gross margin of approximately 1%, down from approximately 36% year-over-year;
- inventory impairment charges related to specialized ESS components;
- quarterly revenue of approximately $96.5 million;
- a 15% year-over-year decline in revenue;
- revenue that fell well below the approximately $136.4 million consensus estimate; and
- customer platform ramp-up delays and regulatory challenges affecting sales.
On March 17, 2026, MVST declined approximately 34.2%, closing at $1.52 per share.
Who May Be Eligible to Participate in the Microvast Class Action?
Investors who purchased or otherwise acquired Microvast Holdings, Inc. (NASDAQ: MVST) securities between April 1, 2025 and March 16, 2026 may be eligible to participate in the proposed securities class action.
If you purchased MVST securities during the Class Period and suffered losses, you may have rights under the federal securities laws.
What Is a Lead Plaintiff?
The lead plaintiff is a representative investor appointed by the court to act on behalf of other members of the proposed class and help direct the litigation.
Investors do not have to become lead plaintiff to potentially participate in any recovery obtained through the litigation.
The deadline to seek appointment as lead plaintiff is September 21, 2026.
Listen to our podcast.
Frequently Asked Questions
What is the Microvast class action about?
The lawsuit alleges that Microvast misled investors about its ability to achieve targeted profit margins and complete its Huzhou Phase 3.2 manufacturing expansion on schedule.
Why did MVST stock fall?
According to the complaint, MVST stock fell after Microvast reported sharply lower gross margins, declining revenue, inventory impairment charges, and customer platform ramp-up delays.
How much did MVST stock fall?
Microvast stock declined approximately 34.2%, falling $0.79 per share to close at $1.52 per share on March 17, 2026.
What is Huzhou Phase 3.2?
Huzhou Phase 3.2 is an expansion of Microvast's manufacturing facility in Huzhou, China. According to the complaint, Microvast represented that the expansion would increase production capacity and be operational before the end of 2025.
Who can participate in the Microvast lawsuit?
Investors who purchased or otherwise acquired Microvast securities between April 1, 2025 and March 16, 2026 may be eligible to participate in the proposed class action.
Do I have to become lead plaintiff?
No. Investors do not have to seek appointment as lead plaintiff to potentially participate in any recovery obtained through the litigation.
What is the deadline to become lead plaintiff?
The deadline to seek appointment as lead plaintiff is September 21, 2026.
Does it cost anything to participate?
No, investors pay no attorneys' fees or litigation expenses. If there is a recovery for shareholders, defendants pay fees and expenses.
Contact Robbins LLP
Investors seeking additional information about the Microvast securities class action may submit nquiry, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.
About Robbins LLP
A recognized leader in shareholder rights litigation, Robbins LLP has helped restore more than $1 billion in value to shareholders, secured some of the largest recoveries in shareholder derivative litigation history, and achieved governance reforms at over 400 Fortune 1000 companies.
"Behind everything we do is the belief that companies should be governed responsibly, fiduciaries should be held accountable, and shareholders deserve transparency and fairness," said Brian J. Robbins, Founding Partner of Robbins LLP.
To be notified if a class action against Microvast Holdings, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
Attorney Advertising. Past results do not guarantee a similar outcome.
SOURCE Robbins LLP
Share this article