#USA #New York #Class Action #Levi Korsinsky #Microvast Holdings

Investment Alert: Microvast Holdings, Inc.

Recent developments indicate that Microvast Holdings, Inc. (NASDAQ: MVST) is the subject of a securities class action lawsuit orchestrated by Levi & Korsinsky, LLP. The lawsuit seeks to address significant concerns about the company’s reported financial performance during a critical period for shareholders.

Background of the Case

This class action pertains specifically to shareholders who purchased shares between April 1, 2025, and March 16, 2026. During this timeframe, the company's stock experienced a dramatic drop of 34.2%, closing at $1.52 per share following disappointing financial results for the fourth quarter of 2025. Microvast reported revenue of $96.5 million, falling short of the consensus estimate of $136.4 million, along with a dismal gross margin of just 1.0% and a $32.5 million inventory impairment.

Allegations Against Microvast

The lawsuit alleges that Microvast misled investors regarding its gross margin targets and the timeline for completing the Huzhou Phase 3.2 manufacturing expansion. Plaintiffs argue that the company failed to adequately disclose critical issues surrounding inventory management, delays in customer platform rollouts in Europe, the Middle East, and Africa (EMEA), and various operational challenges that negatively impacted profit margins. Key allegations include:
1. Overstated Expectations: Claims that Microvast exaggerated its ability to meet ambitious profitability targets and effectively manage the launch of specialized ESS inventory.
2. Miscommunication of Risks: The lawsuit highlights a pattern of misleading information that failed to inform investors about the potential risks associated with production timelines and inventory issues.
3. Delayed Disclosures: Important red flags were allegedly missed, such as a June 2025 report from short-sellers, a sudden executive departure in August 2025, and concerning updates regarding production schedules.

Understanding Investors' Rights

For shareholders who believe they may have been adversely affected during the class period, it’s crucial to assess potential eligibility to participate in the class action. Investors can review their trading records to determine any losses associated with the purchase and sale of shares during the noted timeframe. Key points to remember include:

• - Eligibility Window: Only those who bought shares from April 1, 2025, to March 16, 2026, are typically included in the class.
• - No Need to Hold Shares: You do not have to still own the shares to qualify for damages; losses can be assessed post-sale.
• - Documentation Required: To evaluate potential losses, shareholders should gather brokerage statements that clarify purchase dates, quantities, prices, and any sale transactions.

Next Steps for Investors

For investors navigating these uncertain waters, it’s vital to act promptly. Levi & Korsinsky encourages affected shareholders to contact their office, as the deadline for lead plaintiff applications is September 21, 2026. Those interested can reach out via email or phone for guidance and support in understanding their rights and potential next steps.

Conclusion

The unfolding situation surrounding Microvast Holdings highlights the complexity of investor rights in cases of alleged securities fraud. With the potential for considerable losses, stakeholders are urged to stay informed and proactive about their investments.

For more information and assistance regarding the Microvast class action, please reach out to Levi & Korsinsky, LLP. Their team has a long-standing reputation in securities litigation, empowering investors to seek justice and financial recompense for their losses.