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id: 905, Created by Stan Vick, Scout
Microvast (MVST) J Capital's Report Over Grant Loss Case
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19 Oct 2022Class period Start
20 Nov 2023Class period End
- 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- It stated the Company knew the Grant had been rescinded for months before Reuters reporting but failed to inform investors.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.
Failure to Disclose,
Shock Event Date
21 November 2023
05 December 2023
Lead Plaintiff Deadline
05 February 2024
Hon. Andrew S. Hanen