Methode Electronics(US:MEI) GlobeNewswire News Room·2024-09-10 17:20Core 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].