Methode Electronics, Inc. (NYSE: MEI)

This lawsuit is for anyone who acquired securities in Methode Electronics, Inc. (NYSE: MEI) from June 23, 2022 through March 6, 2024.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the class period, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors that the Company’s transition from making low tech mass produced center consoles to high tech specialized auto parts for EV manufacturers was going worse than expected because, among other things, the Company lost the employees necessary to make the transition post-COVID.

On March 9, 2023, Methode released its third quarter fiscal 2023 financial results, lowering its 2023 diluted EPS guidance, with analysts theorizing that the miss was due to “customer production ramp delays.” On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on June 12, 2023, Methode released its preliminary 2023 financial results, stating that it expected to report below-range annual EPS and lower-than-expected net sales guidance and diluted EPS “due to additional costs to support new program launches and the impact from program roll-offs,” among other factors. On June 22, 2024, Methode announced financial results for its fourth quarter and full fiscal year 2023, reporting net sales below the preliminary results previously provided. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on September 7, 2023, Methode released it’s first quarter fiscal 2024 financial results, stating that “operational inefficiencies” in the Company’s North American operations and accelerated expenses related to new program launches had negatively impacted earnings for the quarter and were expected to linger into the second quarter. The Company also lowered its expected 2024 net sales and diluted EPS. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on December 7, 2023, Methode released its second quarter fiscal 2024 financial results, revealing that the Automotive Segment had generated only $154.3 million in net sales and suffered a $61.5 million loss from operations during the quarter. The Company also further lowered its diluted EPS guidance and revenue guidance. Additionally, Methode disclosed operational challenges at its Monterrey facility, which were expected to impact the second half of the fiscal year. The Company also disclosed a $56.5 million goodwill impairment in the Company’s North American and European Automotive Reporting Units. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Finally, on March 7, 2024, Methode released its third quarter fiscal 2024 financial results, missing consensus estimates. Additionally, the Company stated that previous guidance should no longer be relied upon due to various market and operational challenges that the business was facing. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities Methode Electronics, Inc. (NYSE: MEI) from June 23, 2022 through March 6, 2024 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.