Microvast Holdings, Inc. (NASDAQ: MVST)

This lawsuit is for anyone who acquired securities in Microvast Holdings, Inc. (NASDAQ: MVST) from October 19, 2022 through November 20, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely tell investors that it would not actually receive a grant that the U.S. Department of Energy had previously conditionally granted the Company to make a high-temperature resistant synthetic polymer used in high-capacity lithium-ion batteries.

On May 22, 2023, after the market closed, Reuters reported the DOE would not award Microvast the Grant. In a call with congressional staff that evening, the DOE confirmed negotiations with Microvast concerning the Grant had been cancelled. A spokesperson for the DOE stated “[t]he department can confirm that it has elected to cancel negotiations and not to award Microvast funds from this competitive funding opportunity.”  The DOE stated it would not comment publicly on why it decided to cancel negotiations with any applicant but did state “the Department of Energy maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations under a DOE competitive funding opportunity to not ultimately receive an award[.]”  This news came after months of political fervor over the Company’s alleged ties to China. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on November 21, 2023, at approximately 9:00 a.m., J Capital Research published a report on Microvast entitled “MVST: Empty Facilities and a Grant Loss That Was Probably Hidden: Another China Hustle” (the “Report”). The Report alleged the Company knew the Grant had been rescinded for months prior to Reuters reporting but failed to inform investors. The Report alleged further that “the majority of MVST’s sales may be fake,” that “Chinese customers account for 57% of revenue in 2023” but drone footage shows the Company’s Chinese factory “shows almost no activity,” that the Company “has disappeared from Chinese procurement lists” and “local competitors say the company is not making discernible sales” and that the Company’s reported backlog was “dubious.” 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 in Microvast Holdings, Inc. (NASDAQ: MVST) from October 19, 2022 through November 20, 2023 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.