Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $75,000 In Methode Electronics To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $75,000 in Methode Electronics between June 23, 2022 and March 6, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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NEW YORK, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Methode Electronics, Inc. (“Methode Electronics” or the “Company”) (NYSE: MEI) and reminds investors of the October 25, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) Methode Electronics had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode Electronics’ transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility; (ii) Methode Electronics’ attempts to replace its General Motors center console production with more diversified, specialized products for a wider array of vehicle manufacturers and OEMs, in particular in the electric vehicle (“EV”) space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of Methode Electronics’ strategic plans; (iii) Methode Electronics’ manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials; (iv) Methode Electronics had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode Electronics from timely receiving revenue from new EV program awards; and (v) as a result, Methode Electronics was not on track to achieve the 2023 diluted earnings-per-share guidance or the 3-year 6% organic sales compound annual growth rate represented to investors and such estimates lacked a reasonable factual basis.
On July 14, 2023, Methode Electronics announced that "[o]n July 10, 2023, Joseph Khoury was placed on leave from his position as Chief Operating Officer . . . , and his powers, authority and duties as such officer of the Company were suspended." On this news, Methode Electronics’ stock price fell $0.53 per share, or 1.57%, to close at $33.27 per share on July 14, 2023.
Then, on December 7, 2023, Methode Electronics announced that the Company had removed Joseph Khoury from his position as Chief Operating Officer and terminated him as an employee.
On this news, Methode Electronics' stock price fell $2.27 per share, or 9.27%, to close at $22.13 per share on December 7, 2023.
Then, on March 7, 2024, Methode Electronics announced its financial and operating results for the third quarter of fiscal year 2024, which ended on January 27, 2024. The Company reported third-quarter non-GAAP earnings per share of -$0.33, missing expectations by $0.41, and revenue of $259.5 million, missing expectations by $28.53 million. Citing several market and operational hurdles, Methode Electronics announced the suspension of its future financial guidance and advised that previous forecasts should no longer be considered reliable.
On this news, Methode Electronics' stock price fell $6.55 per share, or 31.13%, to close at $14.49 per share on March 7, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Methode Electronics’ conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Methode Electronics class action, go to www.faruqilaw.com/MEI or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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