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Microvast faces class action over 2025-2026 margin and Huzhou expansion claims

Microvast faces class action over 2025-2026 margin and Huzhou expansion claims

Lawsuits on behalf of investors who bought MVST securities between April 1, 2025 and March 16, 2026 allege misleading statements on margin targets and Huzhou Phase 3.2, with a September 21, 2026 lead-plaintiff deadline.

Fact Check
Multiple independent law firms (Gainey McKenna & Egleston, Holzer & Holzer, Bernstein Liebhard, Kaplan Fox, plus Robbins LLP and Pomerantz found in search) each confirm the exact class period (April 1, 2025 to March 16, 2026), the specific allegations about margin targets (inventory issues, commercial-vehicle rollout delays) and Huzhou Phase 3.2 expansion, and the September 21, 2026 lead-plaintiff deadline. The Kaplan Fox source additionally identifies the venue (Southern District of Texas) and that the corrective disclosure occurred March 16, 2026. The consistency across many independent primary announcements makes the claim highly credible.
Summary

Microvast Holdings, Inc. is facing shareholder class action litigation alleging it misled investors between April 1, 2025 and March 16, 2026 about its ability to meet margin targets and complete its Huzhou Phase 3.2 manufacturing expansion in China by the end of 2025. The complaints allege inventory management issues and delays in commercial vehicle rollouts by customers undermined those claims. Robbins LLP said later disclosures culminated in March 16, 2026 results showing quarterly gross margin of about 1%, down from about 36% a year earlier, revenue of $96.5 million versus a $136.4 million consensus estimate, and a 15% year-over-year decline; Microvast attributed the results to inventory impairment charges tied to specialized ESS components, regulatory shifts in South Korea, and delays in customer platform ramp-up in Europe, the Middle East, and Africa. The stock fell $0.79, or 34.2%, to $1.52 on March 17, 2026. Notices from Robbins LLP and Holzer & Holzer, LLC solicit investors, with September 21, 2026 identified as the deadline to seek appointment as lead plaintiff.

Terms & Concepts
  • gross margin: Revenue left after direct production costs.
  • ESS: Energy storage systems that store electricity.
  • lead plaintiff: Representative investor appointed to act on behalf of a class in directing a securities class action.