Microvast Holdings, Inc
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
If you choose to take no action, you can remain an absent class member.
Joining the case through the Portnoy Law website enables investors to learn about their legal claims and take an active role in recovering their losses.
The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
In October 2022, the U.S. Department of Energy (DOE) conditionally selected Microvast for a proposed $200 million grant to fund a polyaramid separator production facility. Polyaramid is a synthetic polymer resistant to high temperatures, used in insulating films for lithium-ion batteries.
However, on May 22, 2023, it was reported by Reuters that the DOE would not award the Grant to Microvast. The DOE confirmed in a call with congressional staff that negotiations with Microvast had been cancelled, without publicly commenting on the reasons for this decision. This development followed months of political scrutiny over Microvast’s alleged connections to China.
Following this news, Microvast’s share price dropped by $0.80, or 36%, closing at $1.40 per share on May 23, 2023, amid heavy trading.
Further, on November 21, 2023, J Capital Research published a report alleging that Microvast was aware for months that the Grant had been rescinded but failed to inform investors. The report also claimed that a majority of Microvast’s sales might be fabricated, citing evidence like inactive Chinese facilities and absence from Chinese procurement lists, raising doubts about the company’s reported backlog.
Upon this revelation, Microvast’s stock price fell again by $0.33, or 25%, closing at $0.98 per share on November 21, 2023, on high trading volume.
The class action lawsuit against Microvast alleges that during the Class Period, the company made false and/or misleading statements and failed to disclose important negative information about its business, operations, and prospects. Specifically, the lawsuit claims that Microvast did not disclose the likelihood of not receiving the DOE Grant, the cessation of negotiations and rescinding of the Grant, misrepresented the nature and profitability of its business and partnerships, and as a result, made materially misleading statements about the company’s operations and prospects.
