The litigation, filed in the U.S. District Court for the Southern District of Texas, alleges that Microvast misled shareholders regarding its financial health and production capabilities. Throughout the class period, the company projected annual revenues between $450 million and $475 million and touted gross margins of up to 35%. However, the company later reported fourth-quarter revenue of only $96.5 million, falling well short of the $136.4 million consensus estimate, while gross margins plummeted to 1.0%.
Microvast Faces Class Action Lawsuit Following Margin Collapse
Investors who purchased Microvast Holdings shares between April 1, 2025, and March 16, 2026, are being notified of a securities class action lawsuit. The filing follows a 34.2% drop in stock value triggered by revenue shortfalls and a significant inventory impairment that diverged sharply from previous company guidance.
According to the complaint, these discrepancies were exacerbated by a $32.5 million impairment on specialized ESS components and delays in the Huzhou Phase 3.2 expansion project, which failed to meet its end-of-year 2025 production target. Joseph E. Levi of Levi & Korsinsky, LLP, which is representing the plaintiffs, stated that the company failed to disclose known risks to its projections, ultimately leading to the sharp decline in share price on March 17, 2026. Shareholders seeking to be appointed as lead plaintiff have until September 21, 2026, to file their motions with the court.
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