Class Action Filed Against Microvast Holdings Over Financial Misrepresentations
News related to:Microvast Holdings, Inc · 1 min read
NEW YORK, Sept. 18, 2026 (GLOBE NEWSWIRE), A class action lawsuit has been filed against Microvast Holdings, Inc. (NASDAQ:MVST) in the United States District Court for the Southern District of Texas. The lawsuit, brought by Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, alleges that Microvast Holdings, Inc. misled investors about its financial health and expansion plans.
According to the complaint, during the class period from April 1, 2025, to March 16, 2026, Microvast Holdings, Inc. announced the expansion of its manufacturing facility in Huzhou, China, under the initiative "Huzhou Phase 3.2." The company claimed that this expansion would be completed by the end of 2025 and would lead to improved margins as the company repositioned itself away from low-margin segments and towards more profitable, higher-value opportunities.
However, the complaint alleges that Microvast Holdings, Inc. failed to disclose critical information. Specifically, the company is accused of overstating its ability to reach its margin targets due to inventory management issues and delays in the commercial vehicle rollouts by its customers. Additionally, the lawsuit claims that the company overstated its ability to complete the Huzhou Phase 3.2 expansion by the end of 2025.
On March 16, 2026, Microvast Holdings, Inc. reported its consolidated financial results for the fourth quarter and full fiscal year ended December 31, 2025. The company disclosed that its gross margin had decreased compared to 2024, primarily attributable to a $32.5 million inventory impairment charge related to specialized energy storage system (ESS) components. The stock price of Microvast Holdings, Inc. dropped following this news.
Bragar Eagel & Squire, P.C. is encouraging investors who purchased or acquired Microvast securities between April 1, 2025, and March 16, 2026, to contact the firm to discuss their legal rights. Investors have until September 21, 2026, to apply to the Court to be appointed as lead plaintiff in the lawsuit.