Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Dec. 13, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Microvast Holdings, Inc. (“Microvast” or the “Company”) (NASDAQ: MVST) investors that a lawsuit was filed on behalf of investors that purchased Adobe securities between October 19, 2022 and November 20, 2023, inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
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 canceled, 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21, 2023, J Capital Research published a report alleging that Microvast was aware for months that the Grant had been rescinded but failed to inform investors.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.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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