Investors File Class Action Lawsuit Against Microvast Holdings

The complaint alleges that between April 1, 2025, and March 16, 2026, Microvast executives issued false statements concerning the company’s business health. Specifically, plaintiffs claim the firm overstated its ability to meet margin targets and failed to disclose critical inventory management issues alongside delays in commercial vehicle rollouts. Furthermore, the company allegedly misrepresented the timeline for its Huzhou Phase 3.2 expansion, promising capacity by late 2025 that did not materialize as scheduled.

Market volatility followed a series of disclosures. A June 2025 report from Grizzly Research accused Microvast of fabricating business capabilities and overstating production activity, triggering a 10.23% drop in share price. Investor confidence suffered further hits throughout the year, including the sudden departure of CFO Charles Schultz and the eventual revelation that the Huzhou expansion would face significant delays. By March 2026, the company reported a sharp decline in gross margins to 1%, down from 36% the previous year, and missed revenue targets by nearly $40 million. Following this news, the stock price plunged 34.2%.