NEW YORK, NY / ACCESSWIRE / January 28, 2024 / Pomerantz LLP announces that a class action lawsuit has been filed against Microvast Holdings, Inc. ("Microvast" or the "Company") (NASDAQ:MVST). Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Microvast and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until February 5, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Microvast securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
In October 2022, the United States Department of Energy ("DOE") conditionally selected Microvast for a proposed $200 million grant to help fund a proposed polyaramid separator production facility (the "Grant"). Then, on May 22, 2023, after the market closed, Reuters reported that the DOE would not award Microvast the Grant. In a call with congressional staff that evening, the DOE confirmed negotiations with Microvast concerning the Grant had been cancelled. While the DOE declined to comment publicly on why it decided to cancel negotiations with any applicant, it did state that it "maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations under a DOE competitive funding opportunity to not ultimately receive an award[.]" This news came after months of political fervor over the Company's alleged ties to China.
On this news, Microvast's stock price fell $0.80 per share, or 36%, to close at $1.40 per share on May 23, 2023.
Then, on November 21, 2023, J Capital Research published a report on Microvast entitled "MVST: Empty Facilities and a Grant Loss That Was Probably Hidden: Another China Hustle" (the "Report"). The Report alleged the Company knew the Grant had been rescinded for months prior to Reuters reporting but failed to inform investors. The Report alleged further that "the majority of MVST's sales may be fake," that "Chinese customers account for 57% of revenue in 2023" but drone footage shows the Company's Chinese factory "shows almost no activity," that the Company "has disappeared from Chinese procurement lists" and "local competitors say the company is not making discernible sales" and that the Company's reported backlog was "dubious."
On this news, Microvast's stock price fell $0.33 per share, or 25%, to close at $0.98 per share on November 21, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
SOURCE: Pomerantz LLP
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