Core Viewpoint - A class action lawsuit has been filed against Methode Electronics, Inc. and certain former executives for alleged violations of federal securities laws during the Class Period from June 23, 2022, to March 6, 2024 [1][2]. Company Overview - Methode Electronics designs, engineers, and manufactures custom-engineered solutions for Original Equipment Manufacturers (OEMs) across various end markets, including transportation, cloud computing, construction equipment, consumer appliances, and medical devices [4]. Historical Context - Historically, Methode's significant revenue came from a contract to produce center consoles for General Motors (GM), which accounted for approximately 50% of the Company's net sales in 2016 [5]. - By 2020, Methode began transitioning away from reliance on traditional center stack units due to automotive trends, with expectations that lost sales would be offset by higher margins on specialized components and new contracts in the electric vehicle (EV) sector [5]. Allegations and Misleading Statements - Defendants allegedly made false and misleading statements regarding the Company's business health and transition strategy, claiming it was prospering while failing to disclose significant operational challenges [5]. - Key issues included loss of skilled employees during the COVID-19 pandemic, production planning deficiencies, inventory shortages, and logistical defects in manufacturing systems [5]. Financial Performance and Stock Impact - The truth about Methode's financial struggles began to emerge in March 2023, culminating in an $11 million loss from operations reported in March 2024, alongside the withdrawal of prior guidance and drastic expense reduction measures [6]. - Following these disclosures, Methode's stock price fell dramatically, currently hovering around $10 per share, which is over 80% below its Class Period high [6]. Executive Departures - Several key executives, including the Chief Operating Officer, Chief Financial Officer, and two Chief Executive Officers, departed the Company around the end of the Class Period, indicating potential instability in leadership [7].

RADNOR, Pa., Sept. 11, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois against Methode Electronics, Inc. ("Methode") (NYSE:MEI) on behalf of investors who purchased or otherwise acquired Methode common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period") The lead plaintiff deadline is October 25, ...

LOS ANGELES, Sept. 11, 2024 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Methode Electronics, Inc. ("Methode" or "the Company") (NYSE: MEI) violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission. Investors who purchased the Company's securities between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"), ar ...

CHICAGO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Methode Electronics, Inc. (NYSE: MEI), a leading global supplier of custom-engineered solutions for user interface, LED lighting, and power distribution applications, will present at the Sidoti Small Cap Conference on Wednesday, September 18th at 2:30 p.m. EDT. A simultaneous webcast can be accessed on the company's website, www.methode.com, by selecting the Investors page. The webcast will also be archived on the same Investors page. About Methode Electronics, In ...

Core Viewpoint - Methode Electronics, Inc. is facing a class action lawsuit due to allegations of misleading statements and operational failures during the transition to a new production model, particularly affecting its electric vehicle (EV) programs [2][3]. Group 1: Allegations and Issues - The lawsuit claims that during the COVID-19 pandemic, Methode Electronics lost skilled employees essential for transitioning from a low mix, high volume production model to a high mix, low production model at its Monterrey facility [2]. - The company's efforts to diversify its product offerings for various vehicle manufacturers, especially in the EV sector, were hindered by production planning issues, inventory shortages, and supplier problems, leading to poor execution of strategic plans [2]. - Manufacturing systems at the Monterrey facility reportedly suffered from logistical defects, including improper system coding, shipping errors, and quality control failures, which contributed to delays in launching new EV programs [2]. - As a result of these operational challenges, Methode Electronics is not on track to meet its 2023 diluted earnings per share guidance or the projected 6% organic sales CAGR over three years, indicating that these estimates lacked a reasonable factual basis [2]. Group 2: Class Action Details - Shareholders who purchased shares of Methode Electronics during the class period from June 23, 2022, to March 6, 2024, are encouraged to register for the class action, with a deadline set for October 25, 2024 [3]. - Once registered, shareholders will receive updates on the case's progress through a portfolio monitoring software, and there is no cost or obligation to participate [3]. - The Gross Law Firm, which is leading the class action, emphasizes its commitment to protecting investors' rights against deceitful business practices [4].

NEW YORK, Sept. 9, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Methode Electronics, Inc. (NYSE: MEI). Shareholders who purchased shares of MEI during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/methode-electronics-inc-loss-submission-form/?id=100732&from=4 CLASS PERIOD: Jun ...

SAN DIEGO, Sept. 08, 2024 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Methode Electronics, Inc. (NYSE: MEI) common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"), have until October 25, 2024 to seek appointment as lead plaintiff of the Methode Electronics class action lawsuit. Captioned Salem v. Methode Electronics, Inc., No. 24-cv-07696 (N.D. Ill.), the Methode Electronics class action lawsuit charges Methode Electronics a ...

NEW YORK, Sept. 06, 2024 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C., a preeminent law firm in obtaining redress for consumers and investors, announces the filing of a class action lawsuit against Methode Electronics, Inc. ("Methode Electronics" or the "Company") (NYSE: MEI) for violations of the federal securities laws on behalf of investors who purchased or acquired Methode Electronics common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period"). On August 26, 2024, a complaint was f ...

RADNOR, Pa., Sept. 05, 2024 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of Illinois against Methode Electronics, Inc. ("Methode") (NYSE:MEI) on behalf of investors who purchased or otherwise acquired Methode common stock between June 23, 2022 and March 6, 2024, inclusive (the "Class Period") The lead plaintiff deadline is October 25, ...

Financial Data and Key Metrics Changes - First quarter net sales were $258.5 million, a decrease of 11% compared to $289.7 million in fiscal 2024, and a sequential decrease of 7% from the previous quarter [21] - Adjusted loss from operations was $4.7 million, down $10 million from fiscal 2024, with a sequential improvement of $5.1 million [22] - Adjusted EBITDA for the first quarter was $9.8 million, down $9.5 million year-over-year but improved by $4.5 million sequentially [23] - Adjusted pretax loss was $9.1 million, down $11.6 million from fiscal 2024, with a sequential improvement of $4.7 million [24] - Adjusted diluted loss per share decreased to negative $0.31 from positive $0.06 in the same period last fiscal year [25] - Cash from operations improved by over $16 million, with a reduction in working capital by $9 million [14][27] Business Line Data and Key Metrics Changes - Sales from the EV segment accounted for 18% of consolidated total sales, up from 14% in the previous quarter [13] - The company is transitioning from large legacy programs to multiple new program launches, with over 30 programs expected in fiscal 2025 and another 20 in fiscal 2026 [9][16] Market Data and Key Metrics Changes - Key market headwinds were noted in automotive, commercial vehicles, construction, and agriculture sectors, with a softening near-term outlook for the EV market in North America [13] - The company reported solid order momentum with over $80 million in annual program awards, although the pipeline of potential bookings is subject to reduction or delay due to market conditions [14] Company Strategy and Development Direction - The company is undergoing a transformation to position itself for long-term value creation, focusing on executing a large pipeline of new programs and improving operational metrics [8][19] - The new CEO emphasized the importance of resetting performance, building capabilities, and shifting the company culture to drive future success [11] Management's Comments on Operating Environment and Future Outlook - Management affirmed guidance for flat sales in fiscal 2025, followed by profitable organic sales growth in fiscal 2026, despite headwinds in several key markets [10][19] - The CEO highlighted the need for operational improvements and the importance of executing new program launches effectively [36] Other Important Information - The company is in compliance with all debt covenants and has reduced debt by $34.9 million from the prior year [26] - The new CFO, Laura Kowalchik, is expected to bring a strong track record of successful business transformations [10] Q&A Session Summary Question: Can you unpack the gross margin improvement in automotive? - Management noted operational improvements, price increases passed to customers, and cost reductions contributed to the sequential improvement in gross margin [30] Question: How does the appliance roll-off impact the business? - The interface business is critical, and while there are challenges, new appliance programs are being launched alongside existing ones [32] Question: What are the initial focus areas for the new CEO? - The CEO's priorities include ensuring successful program launches, supporting customers, and driving a holistic financial improvement approach [34][35] Question: How does the company view market conditions for guidance? - Management remains cautious and is affirming guidance based on current market conditions and performance [40][41] Question: What is the impact of price increases on gross margin? - Management indicated that price increases have positively impacted gross margins, but specific details on quarter-by-quarter impact were not provided [43] Question: What is the opportunity for better procurement on the supply chain? - The company is focusing on total supply chain costs, including procurement, scheduling, and inventory management to optimize costs [45] Question: What is the status of Stellantis program launches? - The upcoming launches are primarily EV programs, and while there are challenges, the company is confident in the projected sales growth [52][55]