According to the lawsuit, during the Class Period, defendants made false and/or misleading statements and/or failed to disclose that:
- Methode had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode’s transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey, Mexico facility;
- Methode’s attempts to replace its General Motors (“GM”) center console production with more diversified, specialized products for a wider array of vehicle manufacturers and Original Equipment Manufacturers (“OEMs”), in particular in the electric vehicle (“EV”) space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of Methode’s strategic plans;
- Methode’s manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials;
- Methode had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode from timely receiving revenue from new EV program awards; and
- as a result of the foregoing, Methode was not on track to achieve the 2023 diluted earnings per share (“EPS”) guidance or the 3-year 6% organic sales compound annual growth rate (“CAGR”) represented to investors and such estimates lacked a reasonable factual basis.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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