Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Sept. 03, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Methode Electronics, Inc. ("Methode" or the "Company") (NYSE: MEI) investors of a class action representing investors that bought securities between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"). Methode investors have until October 25, 2024 to file a lead plaintiff motion.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 310-692-8883 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
On June 12, 2023, Methode announced its preliminary financial results for 2023, forecasting lower annual earnings per share (EPS) and weaker net sales due to higher costs from new program launches and other factors. On June 22, 2023, Methode reported its fourth-quarter and full-year financial results, showing net sales below its earlier estimates. As a result, Methode’s stock dropped by $12.30, or 27.3%, closing at $32.77 on June 23, 2023.
On September 7, 2023, Methode released its first-quarter results for fiscal 2024, noting that "operational inefficiencies" in North America and increased expenses for new programs had negatively affected earnings, with challenges expected to continue into the second quarter. The company also revised its 2024 sales and EPS forecasts downward. This news caused Methode’s stock to fall by $6.67, or 22.2%, to $23.33 per share on September 7, 2023.
On December 7, 2023, Methode reported its second-quarter results for fiscal 2024. The Automotive Segment posted only $154.3 million in sales and a $61.5 million operational loss for the quarter. The company lowered its EPS and revenue forecasts further and revealed issues at its Monterrey facility, which would affect the second half of the fiscal year. Methode also announced a $56.5 million goodwill impairment in its North American and European Automotive units. Following this announcement, Methode’s stock price dropped by $2.87, or 11.8%, closing at $21.52 on December 8, 2023.
On March 7, 2024, Methode reported its third-quarter results for fiscal 2024, missing market expectations. The company advised that prior guidance was no longer reliable due to ongoing market and operational issues. As a result, Methode’s stock fell by $6.55, or 31.1%, closing at $14.49 per share on March 7, 2024.
The class action complaint alleges that during this period, the Defendants made false or misleading statements and failed to disclose important negative information about Methode’s business and prospects. Specifically, the complaint claims that Defendants did not reveal: (1) the loss of skilled employees necessary for transitioning the Monterrey facility; (2) production issues and strategic failures in diversifying and specializing products, especially for electric vehicles (EVs); (3) logistical defects in manufacturing systems at Monterrey; (4) delays in launching new EV programs; (5) the company’s failure to meet its EPS guidance or sales growth targets; and (6) that Defendants’ positive statements were misleading and lacked a factual basis.
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The Portnoy Law Firm represents investors in pursuing claims against 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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