Important Notice Regarding Alleged Gross Margin and Huzhou Phase 3.2 Misrepresentations
NEW YORK, Aug. 11, 2026 (GLOBE NEWSWIRE) — SueWallSt notifies investors in Microvast Holdings, Inc. (NASDAQ: MVST) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between April 1, 2025 and March 16, 2026. Find out if you could qualify to recover your losses.
Microvast reported a $32.5 million inventory impairment for specialized ESS components, Q4 2025 gross margin of 1.0% compared with 36.6% in Q4 2024, and a revenue miss of $96.5 million versus consensus estimates of $136.4 million. Applications to serve as lead plaintiff must be filed by September 21, 2026.
The Alleged Gross Margin and Manufacturing Expansion Securities Fraud
According to the lawsuit, Microvast and certain officers allegedly overstated the Company’s ability to achieve elevated gross margin targets while also representing that the Huzhou Phase 3.2 manufacturing expansion would add capacity by the end of 2025. The complaint alleges that investors were not adequately informed about inventory management issues and customer rollout delays that could affect those targets.
The lawsuit contends that the alleged gross margin and manufacturing expansion securities fraud centered on two related investor expectations: sustained profitability and timely additional battery production capacity.
How Huzhou Phase 3.2 Allegedly Affected Investor Expectations
The complaint alleges that Microvast repeatedly pointed to the Huzhou Phase 3.2 expansion as a driver of future growth and capacity. Later disclosures indicated that production would not begin until Q1 2026, rather than the previously discussed Q4 2025 timeline.
“This case presents important questions about gross margin and manufacturing expansion disclosure obligations in the battery technology sector. Investors should be able to evaluate whether margin targets and capacity timelines were supported by the facts alleged in the complaint.” — Joseph E. Levi, Esq.
Key Gross Margin and Huzhou Phase 3.2 Allegations for Shareholders
- The complaint alleges Microvast promoted a path to improved margins tied to higher-value opportunities and operational efficiencies.
- The lawsuit contends the Company overstated its ability to meet gross margin targets while inventory risks were allegedly developing.
- The complaint alleges the Huzhou Phase 3.2 expansion timeline was presented as achievable by the end of 2025.
- The action claims customer platform rollout delays in EMEA affected revenue timing and margin expectations.
- The complaint alleges the $32.5 million inventory impairment undermined prior margin-related representations.
The Specialized ESS Inventory Factor
The lawsuit contends that specialized ESS components were manufactured for a customer but did not generate associated revenue during 2025. As alleged, that inventory impairment had a major effect on reported gross margin and contributed to investor losses when prior margin expectations were revised by subsequent results.
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Frequently Asked Questions About the MVST Lawsuit
Q: What is the MVST class action lawsuit about? A: A securities class action has been filed against Microvast Holdings, Inc. (NASDAQ: MVST) alleging materially false and misleading statements between April 1, 2025 and March 16, 2026. Shares fell approximately 34.2% after the Company disclosed a Q4 revenue miss, a gross margin collapse to 1.0%, and a $32.5 million inventory impairment related to specialized ESS components. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: What specific misstatements does the MVST lawsuit allege? A: The complaint alleges Microvast made materially false or misleading statements regarding its ability to reach high gross margin targets and complete the Huzhou Phase 3.2 manufacturing expansion by the end of 2025, while allegedly failing to disclose inventory management issues and customer rollout delays.
Q: What court was the MVST class action filed in? A: The case was filed in the United States District Court for the Southern District of Texas, Houston Division, and is governed by the Private Securities Litigation Reform Act of 1995.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.
Q: What if I already sold my MVST shares, can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis. No upfront fees, no retainer, and no out-of-pocket costs. Any attorneys’ fees and expenses awarded to class counsel are subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (888) SueWallSt
Fax: (212) 363-7171
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