NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces that a shareholder filed a class action on behalf of purchasers of common stock of Methode Electronics, Inc. (NYSE: MEI) between June 23, 2022 and March 6, 2024, both dates inclusive (the “Class Period”). Methode “design[s], engineer[s], and produce[s] mechatronic products for OEMs utilizing our broad range of technologies for user interface, LED lighting system, power distribution and sensor applications.”
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The Allegations: Rosen Law Firm is Investigating the Allegations that Methode Electronics, Inc. (NYSE: MEI) Misled Investors Regarding its Business Operations.
According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Methode had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete the Company’s transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey, Mexico facility; (2) the Company’s attempts to replace its General Motors (“GM”) center console production with more diversified, specialized products for a wider array of vehicle manufacturers and Original Equipment Manufacturers (“OEMs”), in particular in the electric vehicle (“EV”) space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of the Company’s strategic plans; (3) Methode’s manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials; (4) the Company had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode from timely receiving revenue from new EV program awards; and (5) as a result of the foregoing, Methode was not on track to achieve the 2023 diluted earnings per share (“EPS”) guidance or the 3-year 6% organic sales compound annual growth rate (“CAGR”) represented to investors and such estimates lacked a reasonable factual basis. When the true details entered the market, the lawsuit claims that investors suffered damages.
What Now: You may be eligible to participate in the class action against Methode Electronics, Inc. Shareholders who want to serve as lead plaintiff for the class must file their motions with the court by October 25, 2024. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
About Rosen Law: Some law firms issuing releases about this matter do not actually litigate securities class actions; Rosen Law Firm does. A recognized leader in shareholder rights litigation, the attorneys and staff of Rosen Law Firm have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing. Since our inception, we have obtained over $1 billion for shareholders.
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