NEW YORK, Aug. 20, 2026 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Microvast Holdings, Inc. ("Microvast" or the "Company") (NASDAQ: MVST) and certain officers.   The class action, filed in the United States District Court for the Southern District of Texas, Houston Division, and docketed under 26-cv-05804, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Microvast securities between April 1, 2025 and March 16, 2026, both dates inclusive (the "Class Period"), seeking to recover damages caused by Defendants' violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
If you are an investor who purchased or otherwise acquired Microvast securities during the Class Period, you have until September 21, 2026, to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.  To discuss this action, contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. Â
Microvast purports to design, develop, and manufacture "advanced specialized battery technologies", primarily for use in electric commercial vehicles and energy storage systems ("ESS"). The Company refers to commercial vehicles as customer platforms.Â
In recent years, Microvast has experienced significant turnover at the Chief Financial Officer ("CFO") position. Before Defendant Rodney Worthen was appointed interim CFO in August 2025, Microvast had four different CFOs in the preceding three year-period: Craig Webster (April 2022 through April 2024), Yasser Ali ("Ali") (July 2024 through August 2024), Defendant Fariyal Khanbabi ("Khanbabi") (October 2024 through April 2025), and Defendant Pat T. Schultz ("Schultz") (April 2025 through August 2025). Two of those CFOs (Ali and Schultz) lasted less than a year in the role, and Microvast did not provide investors with any reason for the eventual departures of three of the CFOs (Ali, Khanbabi, and Schultz).Â
Notwithstanding the high turnover in the CFO role, Microvast consistently touted the Company's business and growth prospects throughout the Class Period. At the outset of the Class Period, Microvast announced the expansion of its manufacturing facility located in Huzhou, China, dubbing the initiative "Huzhou Phase 3.2", claiming that its increased production capacity would be online before the end of 2025.
Defendants likewise advised investors to expect improved margins, touting a supposed "strategic repositioning away from low-margin segments" and a new "focus . . . towards more profitable, higher-value opportunities".Â
The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) due to, inter alia, inventory management issues and delays in commercial vehicle rollouts by Microvast's customers, Defendants had overstated Microvast's ability to reach its margin targets; (ii) Defendants overstated Microvast's ability to complete the Huzhou Phase 3.2 expansion by the end of 2025; and (iii) as a result, Defendants' public statements were materially false and misleading at all relevant times.
The market received its first inkling of the true state of Microvast's business and operations on June 25, 2025, when short seller Grizzly Research issued a report concerning Microvast (the "Grizzly Report"), alleging that the Company "is fabricating a significant part of its business and capabilities", including, inter alia, by overstating the level of activity at its production facilities, including the Huzhou facility, and likewise overstating the prospective economic opportunities from its commercial partnerships.
Following publication of the Grizzly Report, Microvast's stock price plunged during intraday trading, falling as much as $0.40 per share, or approximately 10.23%, before ultimately closing at $3.90 per share.
Then, barely one month after the Grizzly Report, on August 1, 2025, Microvast announced the departure of its CFO, Defendant Schultz, just three months after he joined the Company.
On this news, Microvast's stock price fell $0.30 per share, or approximately 9.93%, to close at $2.72 per share on August 4, 2025.
Then, on November 10, 2025, Microvast issued a press release reporting its financial and operating results for the quarter ended September 30, 2025, in which it revealed that production following the Huzhou Phase 3.2 expansion would not begin until Q1 2026 – after repeatedly advising investors that the additional capacity associated with the expansion would be online by Q4 2025.
On this news, Microvast's stock price fell $0.50 per share, or approximately 10%, to close at $4.48 per share on November 11, 2025.
Finally, on March 16, 2026, Microvast issued a press release reporting its financial and operating results for the quarter and year ended December 31, 2025. Among other items, Microvast reported that gross margin declined to approximately 1% for the quarter, down sharply from approximately 36% for the same period in the prior year, which the Company attributed to inventory impairment charges arising from "specialized ESS components". Microvast also reported revenue of $96.5 million for the quarter, representing a 15% year-over-year decrease and falling well short of the consensus estimate of $136.4 million. Microvast attributed this result to "regulatory shifts in South Korea and delays in customer platform ramp-up" in Europe, the Middle East, and Africa. Â
On this news, Microvast's stock price fell $0.79 per share, or 34.2%, to close at $1.52 per share on March 17, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.Â
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