The legal action, spearheaded by Robbins LLP, centers on allegations that Microvast failed to disclose critical operational challenges. According to the complaint, the firm repeatedly assured investors that it was shifting toward higher-value, more profitable business segments and that its Huzhou Phase 3.2 expansion would be fully operational by the end of 2025. Plaintiffs argue these claims were materially misleading.

Financial disclosures made on March 16, 2026, revealed a starkly different reality. Microvast reported its gross margin had plummeted to approximately 1%—down from 36% in the previous year—citing inventory impairment charges and delayed vehicle rollouts by customers. Revenue for the quarter reached $96.5 million, missing the consensus estimate of $136.4 million by a significant margin. Following this report, the company's share price dropped 34.2%, closing at $1.52 on March 17, 2026.

Investors seeking to serve as lead plaintiff in the case must file their applications by September 21, 2026. While the court will appoint a lead representative to manage the litigation, individual investors do not need to take on this role to remain eligible for potential recovery. Robbins LLP notes that participation in the class action does not require any upfront attorney fees or out-of-pocket litigation expenses.