LOS ANGELES, Sept. 03, 2024 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming October 25, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Methode Electronics, Inc. (“Methode” or the “Company”) (NYSE: MEI) common stock between June 23, 2022 and March 6, 2024, inclusive (the “Class Period”).
If you suffered a loss on your Methode investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Methode-Electronics-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.
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, Methode’s stock price fell $6.21, or 13.1%, to close at $41.36 per share on March 13, 2023, thereby injuring investors.
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, 2023, 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, Methode’s stock price fell $12.30, or 27.3%, to close at $32.77 per share on June 23, 2023.
On September 7, 2023, Methode released its 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, Methode’s stock price fell $6.67, or 22.2%, to close at $23.33 per share on September 7, 2023.
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, Methode’s stock price fell $2.87, or 11.8%, to close at $21.52 per share on December 8, 2023.
Then, 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, Methode’s stock price fell $6.55, or 31.1%, to close at $14.49 per share on March 7, 2024, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete the Company’s transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility; (2) that the Company’s attempts to replace its GM center console production with more diversified, specialized products for a wider array of vehicle manufacturers and OEMS, in particular in the EV space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of the Company’s strategic plans; (3) that the Company’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; (4) that the Company had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing the Company from timely receiving revenue from new EV program awards; (5) that, as a result, the Company was not on track to achieve the 2023 diluted EPS guidance or the 3-year 6% organic sales CAGR represented to investors and such estimates lacked a reasonable factual basis; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Methode securities during the Class Period, you may move the Court no later than October 25, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
shareholders@glancylaw.com
www.glancylaw.com
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