Methode Electronics(US:MEI) GlobeNewswire News Roomยท2024-08-27 00:02Core Viewpoint - Methode Electronics, Inc. is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims related to misleading statements and operational failures during a critical transition period [1][4]. Company Overview - Methode Electronics designs, engineers, and produces mechatronic products for Original Equipment Manufacturers (OEMs) [3]. Allegations Summary - The lawsuit alleges that Methode Electronics lost skilled employees during the COVID-19 pandemic, impacting its transition from a low mix, high volume production model to a high mix, low production model at its Monterrey facility [4]. - The company faced production planning deficiencies, inventory shortages, and vendor issues while attempting to diversify its product offerings, particularly in the electric vehicle (EV) sector [4]. - Manufacturing systems at the Monterrey facility reportedly suffered from logistical defects, including improper system coding and shipping errors, which hindered timely revenue from new EV programs [4]. - Methode Electronics is alleged to have fallen behind on launching new EV programs, affecting its ability to meet 2023 earnings guidance and a projected 6% organic sales compound annual growth rate [4]. Legal Process - Investors who purchased Methode Electronics common stock during the specified class period can seek appointment as lead plaintiff in the class action lawsuit, with a deadline of October 25, 2024 [2][6]. - The lead plaintiff will represent the interests of all class members and can select a law firm for litigation [6]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud cases, having secured over $6.6 billion for investors in class action cases, and is recognized for its significant recoveries in securities litigation [7].