The lawsuit, filed by Levi & Korsinsky, LLP, centers on the gap between Microvast's public guidance and its actual financial performance. During the class period, the company projected annual revenues between $450 million and $475 million and touted gross margins of up to 35%. However, the company’s Q4 2025 results revealed revenue of only $96.5 million—well below the $136.4 million consensus estimate—and a gross margin of just 1.0%.
Microvast Faces Class Action Lawsuit Following Revenue and Margin Miss
A 34.2% plunge in Microvast Holdings, Inc. shares on March 17, 2026, has triggered a securities class action lawsuit. Investors who purchased stock between April 1, 2025, and March 16, 2026, allege the company misled them regarding production capacity and gross margin targets before reporting significant quarterly shortfalls.
Plaintiffs contend that Microvast failed to disclose critical risks, including customer rollout delays and inventory management failures. The complaint specifically highlights a $32.5 million impairment charge related to specialized ESS components and delays in the Huzhou Phase 3.2 expansion, which failed to meet its year-end 2025 production deadline. Shares dropped $0.79 to close at $1.52 following these disclosures. Investors seeking to serve as lead plaintiff in the Southern District of Texas case must file by September 21, 2026.
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