Methode Electronics(US:MEI) GlobeNewswire News Roomยท2024-09-17 17:49Core Viewpoint - A securities class action lawsuit has been filed against Methode Electronics, Inc. for allegedly misleading investors regarding its operational challenges and financial performance during the Class Period from June 23, 2022, to March 6, 2024 [1]. Group 1: Allegations Against Methode Electronics - The lawsuit claims that Methode lost skilled employees during the COVID-19 pandemic, which hindered its transition from a low mix, high volume production model to a high mix, low production model at its Monterrey facility [3]. - It is alleged that Methode's efforts to diversify its product offerings, particularly in the electric vehicle sector, faced significant issues including production planning deficiencies, inventory shortages, and vendor problems [3]. - The complaint states that Methode's manufacturing systems at the Monterrey facility suffered from logistical defects, including improper system coding and shipping errors, which affected quality control and procurement of raw materials [3]. - Methode reportedly fell behind on launching new electric vehicle programs, impacting its revenue generation from these initiatives [3]. - As a result of these issues, Methode is claimed to be off track to meet its 2023 earnings-per-share guidance and the projected 6% organic sales growth rate over three years, indicating that these estimates lacked a reasonable factual basis [3]. Group 2: Legal Process and Investor Information - Investors in Methode have until October 25, 2024, to seek appointment as lead plaintiffs in the class action, which allows them to represent the interests of all class members [4]. - The lead plaintiff is typically the investor or group of investors with the largest financial interest in the case, who will select counsel to represent the class [4]. - Kessler Topaz Meltzer & Check, LLP encourages affected investors to contact them for more information regarding the lawsuit [5].