Methode Electronics(US:MEI) GlobeNewswire News Room·2024-09-01 23:55Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of purchasers of Methode Electronics, Inc. common stock during the specified Class Period, alleging misleading statements and failures to disclose critical operational issues that led to investor damages [2][6]. Group 1: Lawsuit Details - The class action lawsuit pertains to common stock purchases of Methode Electronics between June 23, 2022, and March 6, 2024 [2]. - Investors who purchased stock during this period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [3]. - The lawsuit claims that Methode faced significant operational challenges, including loss of skilled employees, production planning deficiencies, and logistical defects at its Monterrey facility, which hindered its transition to a new production model [6]. Group 2: Operational Issues - Methode lost highly skilled employees during the COVID-19 pandemic, impacting its ability to transition from a low mix, high volume production model to a high mix, low production model [6]. - The company encountered production planning deficiencies, inventory shortages, and vendor problems while attempting to diversify its product offerings, particularly in the electric vehicle sector [6]. - Manufacturing systems at the Monterrey facility suffered from various logistical defects, including improper system coding and shipping errors, which affected quality control and timely procurement of raw materials [6]. Group 3: Financial Implications - Methode was reportedly behind on launching new electric vehicle programs, which prevented the company from receiving timely revenue from new program awards [6]. - The lawsuit alleges that Methode was not on track to achieve its 2023 diluted earnings per share guidance or the projected 6% organic sales compound annual growth rate over three years, indicating that these estimates lacked a reasonable factual basis [6].