Microvast (MVST) J Capital's Report Over Grant Loss Case

S.D. Texas

Court

4:23-cv-04565

Case number

19 Oct 2022

Class period Start

20 Nov 2023

Class period End

05 Feb 2024

Lead Plaintiff motion deadline

J Capital exposed Microvast hiding DOE's grant loss and fake sales.
$MVST fell 25%, losing $100M of its shareholder value.
One of affected investors already filed an initial claim over misleading in Texas.
On November 21, 2023, J Capital Research published a report on Microvast entitled “MVST: Empty Facilities and a Grant Loss That Was Probably Hidden: Another China Hustle”. 
It stated the Company knew the Grant had been rescinded for months before Reuters reporting but failed to inform investors. 
The Report alleged that “the majority of MVST’s sales may be fake,” that “Chinese customers account for 57% of revenue in 2023” but drone footage shows the Company’s Chinese factory “shows almost no activity,” that the Company “has disappeared from Chinese procurement lists” and “local competitors say the company is not making discernible sales” and that the Company’s reported backlog was “dubious.”
On this news, $MVST fell 25% and lost over $100 million of its market capitalization.

On May 22, 2023, Reuters reported that the DOE would not award Microvast the Grant. 
In a call with congressional staff, the DOE confirmed negotiations with Microvast concerning the Grant had been canceled. 
The DOE stated “The Department of Energy maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations under a DOE competitive funding opportunity to not ultimately receive an award” This news came after months of political fervor over the Company’s alleged ties to China.
On this news,$MVST fell 36%, damaging shareholders.

Considering all appeared facts, Investors have reasons to suspect that Microvast was hiding true about the Grant and real sales metrcis. One of affected shareholders has already filed an initial claim in Texas.

Case Status

Lead Plaintiff Appointed

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

21 November 2023

Filing date

05 December 2023

Lead Plaintiff Deadline

05 February 2024

Judge

Hon. Andrew S. Hanen

Microvast (MVST) J Capital's Report Over Grant Loss Case

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