Microvast Holdings faces a securities class action with a September 21, 2026 lead plaintiff deadline for shares bought April 1, 2025 to March 16, 2026. The complaint alleges the battery maker overstated gross-margin targets and Huzhou Phase 3.2 expansion timing.
Microvast faces a securities class action with a September 21, 2026 lead plaintiff deadline for shares bought April 1, 2025 to March 16, 2026.
The complaint alleges the battery maker overstated its ability to reach gross-margin targets and complete the Huzhou Phase 3.2 expansion by the end of 2025, according to The Gross Law Firm. The firm also cited inventory management issues and delays in commercial vehicle rollouts by Microvast's customers as factors behind the alleged misstatements. Wolf Haldenstein Adler Freeman & Herz and Rosen Law Firm have issued similar investor alerts with the same lead plaintiff deadline.
The stock fell 34.2 percent to close at $1.52 on March 17, 2026, after Microvast reported Q4 2025 revenue of $96.5 million, down 15 percent year over year and well short of the $136.4 million consensus estimate. Gross margin collapsed to approximately 1 percent from 36 percent a year earlier, which the company attributed to inventory impairment charges on specialized energy storage system components. Microvast also cited regulatory shifts in South Korea and delays in customer platform ramp-up across Europe, the Middle East, and Africa.
Earlier signals of trouble emerged on June 25, 2025, when short seller Grizzly Research published a report alleging Microvast was overstating activity at its production facilities, including the Huzhou plant. The stock fell as much as 10.23 percent that day to close at $3.90. On August 1, 2025, Microvast announced the departure of Chief Financial Officer Charles Schultz just three months after he joined, sending shares down 9.93 percent to $2.72. The company also delayed the Huzhou Phase 3.2 production start to Q1 2026 after previously guiding for Q4 2025 capacity.
Investors who purchased MVST shares during the class period and suffered losses may be eligible to participate in the case. The deadline to seek lead plaintiff appointment is September 21, 2026. Appointment as lead plaintiff is not required to share in any potential recovery. The notice is directed at pension funds, asset managers, and fiduciaries with Microvast exposure, as institutional portfolios may have been impacted by the alleged misstatements.
The lawsuit could expose Microvast to significant legal costs and potential settlement payouts, adding pressure on a stock already trading near multi-year lows. Institutional investors and fiduciaries holding MVST shares face potential portfolio losses as the case progresses through the courts. The September 21 deadline marks the next key milestone for affected shareholders seeking to participate in the litigation.
This article is for informational purposes only and does not constitute investment advice.
