Overview

• Microvast Holdings, Inc., a lithium-ion battery technology company, is facing a class action lawsuit filed on behalf of shareholders who purchased or otherwise acquired Microvast securities between October 19, 2022 and November 20, 2023.
• The lawsuit alleges that Microvast misled investors about its business prospects, including a proposed $200 million grant from the U.S. Department of Energy (DOE) for a polyaramid separator production facility.
• In May 2023, the DOE decided not to award the grant to Microvast, causing the company's share price to fall 36%.
• A report published by J Capital Research in November 2023 alleged that Microvast knew the grant had been rescinded months prior but failed to inform investors, leading to another 25% drop in the company's share price.
• The report also claimed that the majority of Microvast's sales may be fake, with drone footage showing little activity at the company's Chinese factory, which reportedly accounts for 57% of its revenue in 2023.