Methode Electronics(US:MEI) GlobeNewswire News Roomยท2024-09-03 17:58Core Viewpoint - Methode Electronics, Inc. is facing significant operational challenges and financial setbacks, leading to a class action lawsuit due to alleged misleading statements and failure to disclose adverse facts about the company's performance and prospects [8][9]. Financial Performance - On March 9, 2023, Methode lowered its 2023 diluted EPS guidance, attributing the miss to "customer production ramp delays," resulting in a stock price drop of $6.21, or 13.1%, closing at $41.36 per share on March 13, 2023 [3]. - On June 12, 2023, Methode announced it expected to report below-range annual EPS and lower-than-expected net sales, leading to a stock price decline of $12.30, or 27.3%, to close at $32.77 per share on June 23, 2023 [4]. - On September 7, 2023, the company reported "operational inefficiencies" and further lowered its expected 2024 net sales and diluted EPS, causing a stock price drop of $6.67, or 22.2%, to close at $23.33 per share [5]. - On December 7, 2023, Methode revealed a $61.5 million loss from operations in its Automotive Segment and a $56.5 million goodwill impairment, resulting in a stock price decline of $2.87, or 11.8%, to close at $21.52 per share [6]. - On March 7, 2024, the company missed consensus estimates and stated that previous guidance should no longer be relied upon, leading to a stock price drop of $6.55, or 31.1%, to close at $14.49 per share [7]. Class Action Details - The class action lawsuit is on behalf of investors who purchased Methode common stock between June 23, 2022, and March 6, 2024, with a deadline to file a lead plaintiff motion by October 25, 2024 [1][10]. - The complaint alleges that the company made materially false and misleading statements and failed to disclose critical operational issues, including loss of skilled employees, production planning deficiencies, and logistical defects at its Monterrey facility [8].