The lawsuit, filed by Levi & Korsinsky, LLP, centers on the gap between Microvast's public guidance and its actual financial performance. During the class period, the company projected annual revenues between $450 million and $475 million and touted gross margins of up to 35%. However, the company’s Q4 2025 results revealed revenue of only $96.5 million—well below the $136.4 million consensus estimate—and a gross margin of just 1.0%.

Plaintiffs contend that Microvast failed to disclose critical risks, including customer rollout delays and inventory management failures. The complaint specifically highlights a $32.5 million impairment charge related to specialized ESS components and delays in the Huzhou Phase 3.2 expansion, which failed to meet its year-end 2025 production deadline. Shares dropped $0.79 to close at $1.52 following these disclosures. Investors seeking to serve as lead plaintiff in the Southern District of Texas case must file by September 21, 2026.