The litigation alleges that Microvast and its executives misled shareholders by overstating the company's ability to reach margin targets and meet production timelines. Specifically, the complaint claims that management concealed inventory issues and delays in commercial vehicle rollouts, while also providing inaccurate projections regarding the completion of the Huzhou Phase 3.2 expansion. The firm contends that these misrepresentations surfaced through a series of disclosures, including a critical report from Grizzly Research, the abrupt departure of the company's CFO, and a sharp decline in gross margins reported in early 2026.
In section Releases
Investors Face September Deadline in Microvast Class Action
Investors who purchased Microvast Holdings, Inc. securities between April 1, 2025, and March 16, 2026, have until September 21, 2026, to seek the role of lead plaintiff in a federal securities class action lawsuit, according to a notice issued by the law firm Faruqi & Faruqi, LLP.
Throughout the class period, the company's stock price experienced significant volatility tied to these revelations. Shares fell following the June 2025 short-seller report, the August 2025 CFO exit, and the November 2025 announcement regarding production delays. The most pronounced impact followed the March 2026 earnings release, which showed revenue falling well short of consensus estimates and gross margins collapsing to 1% from 36% the previous year. Faruqi & Faruqi is currently investigating these claims and encourages affected shareholders to review their legal options before the upcoming court deadline.
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