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MEI.US
id: 1323

Methode Electronics (MEI) Production Issues Case

N.D. Illinois
Court
1:24-cv-07696
Case number
06/23/2022
Class period Start
03/06/2024
Class period End
10/25/2024
Lead Plaintiff motion deadline
  • $MEI stockholders filed a claim against Methode Electronics for hiding its struggles with key employee losses and production issues during the pandemic.
  • After the financial results on March 7, 2024, $MEI dropped by over 31%.
  • Methode Electronics investors can join this case to be notified about potential recovery.
Case Details:

On March 9, 2023, Methode lowered its earnings outlook for the year, likely due to delays in customer production.

On this news, $MEI fell by 13% on March 13, 2023.

Then, on June 12, 2023, Methode warned that annual earnings and sales would be lower than expected. By June 22, 2024, they confirmed even weaker results.

After this news, $MEI fell by 27.3% on June 23, 2023.

On September 7, 2023, Methode reported that operational problems and higher costs hurt first-quarter earnings and would likely continue, leading them to lower their 2024 sales and earnings forecast. On this news, $MEI dropped by 22.2%.

Then, on December 7, 2023, Methode reported weak second-quarter results, including major losses in the Automotive Segment, lowered forecasts, operational issues, and a $56.5 million goodwill impairment.

After that, on March 7, 2024, Methode missed third-quarter estimates and warned that previous guidance was unreliable due to ongoing challenges.

On this news, $MEI fell by 31.1% on the same day.

Based on these events, $MEI investors filed a claim against Methode Electronics, accusing the company of the following:
  • During the COVID-19 pandemic, Methode struggled with losing key employees and transitioning its Monterrey facility to a new production model.
  • Shifting from GM center consoles to specialized EV products faced setbacks due to production issues, inventory shortages, and delays.
  • These challenges led to missing its 2023 earnings and sales targets.
Considering all the representations, investors suspect Methode Electronics hid its struggles with key employee losses and production issues during the pandemic.
Case Status
Lead Plaintiff Submission
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/07/2024
Filing date
08/26/2024
Lead Plaintiff Deadline
10/25/2024
Collecting participants…