Investigation Launched into Microvast Holdings by Former Louisiana Attorney General Charles C. Foti

Investigation of Microvast Holdings by Kahn Swick & Foti

In a significant development in the realm of corporate governance and investor protection, Kahn Swick & Foti, LLC, a renowned securities litigation firm, has announced an investigation into Microvast Holdings, Inc. (), a company listed on the Nasdaq. This inquiry is spearheaded by former Louisiana Attorney General Charles C. Foti, Jr., who is now a partner at KSF, highlighting the firm’s commitment to safeguarding shareholder interests amid troubling allegations.

The investigation was prompted by a report released by J Capital Research on November 21, 2023. This report raised serious concerns about Microvast's operations and financial integrity, specifically focusing on a prospective $200 million grant from the U.S. Department of Energy intended to support a new production facility for polyaramid separators. According to the report, Microvast had allegedly known for several months that this funding opportunity had been rescinded but had failed to disclose this critical information to its investors until a Reuters report emerged in May 2023.

Moreover, the report contained alarming claims regarding the authenticity of Microvast's sales figures. It suggested that a significant portion of the company's revenue, especially from Chinese clients (cited as accounting for 57% of its income in 2023), could potentially be fabricated. Supporting this assertion, drone footage reportedly captured the company’s Chinese factory displaying minimal activity, and local competitors claimed not to recognize Microvast as a viable player in the market.

As a result of these revelations, Microvast and several of its top executives are facing a securities class action lawsuit. The lawsuit accuses them of violating federal securities laws by failing to disclose material information to shareholders. Recently, a judge presiding over the case rejected the company's motion to dismiss, allowing the lawsuit to proceed. This decision underscores the seriousness of the allegations and the potential implications for Microvast's leadership.

KSF's inquiry concentrates on whether Microvast's officers and directors have breached their fiduciary responsibilities to shareholders, potentially infringing upon both state and federal laws. Given the gravity of the allegations, the outcome of this investigation could have a profound impact on the company and its executives, as well as on the broader corporate governance landscape.

For shareholders who believe they have insights or relevant information that could assist the investigation, KSF encourages them to reach out. They can do so at no cost by calling a dedicated helpline or emailing KSF's managing partner, Lewis Kahn. This open invitation aims to gather as much pertinent information as possible to ensure that all stakeholders are protected and that justice is served.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC has distinguished itself as one of the premier boutique law firms specializing in securities litigation. Under the leadership of Charles C. Foti, Jr. and his partners, KSF has successfully represented a diverse clientele that includes institutional investors and retail shareholders. In the past year, the firm has been recognized among the top ten nationally based on settlement value, which speaks volumes about its effectiveness in advocating for investor rights.

With offices strategically placed across several states including New York, Delaware, California, Louisiana, and more, KSF is poised to navigate the complexities of securities laws and corporate governance, ensuring that shareholders' interests are paramount in every situation they encounter.

In light of the unfolding scenario surrounding Microvast Holdings, both the firm and its partners remain vigilant in pursuing transparency and accountability within the corporate sector, reaffirming their dedication to serving the interests of investors nationwide.