Core Viewpoint - A class action lawsuit has been filed against Gauzy Ltd. due to alleged misleading statements and failure to disclose material adverse facts regarding the company's financial situation, particularly concerning its French subsidiaries [1][5]. Group 1: Lawsuit Details - The lawsuit is filed in the United States District Court for the Southern District of New York, covering individuals and entities that purchased Gauzy securities between March 11, 2025, and November 13, 2025 [1]. - The complaint alleges that Gauzy's management made materially false statements and failed to disclose that three French subsidiaries were unable to meet their debts, leading to the commencement of insolvency proceedings [5]. - The lawsuit claims that the failure to disclose these facts misled investors about the company's business and operational prospects [5]. Group 2: Company Financial Situation - On November 14, 2025, Gauzy announced the initiation of insolvency proceedings for three subsidiaries in France, which could lead to a default under existing senior secured debt facilities [3]. - Following this announcement, Gauzy's share price dropped by $2.00, or 49.8%, closing at $2.02 per share on November 17, 2025, with unusually high trading volume [4]. - The company also stated that it would not release its third-quarter financial results as previously planned due to the ongoing insolvency proceedings [3].

Core Viewpoint - Gauzy Ltd. has announced the commencement of insolvency proceedings for its French subsidiaries, which the company strongly opposes and plans to appeal while ensuring business continuity [1][2][5]. Group 1: Insolvency Proceedings - The Commercial Court of Lyon ordered the commencement of French law insolvency proceedings ("Redressement Judiciaire") for three of Gauzy's subsidiaries in France on November 13, 2025 [2]. - The court appointed two administrators and a creditor representative to oversee the proceedings [2]. - Gauzy plans to appeal the court's decision to the Court of Appeal of Lyon as soon as possible [5]. Group 2: Financial Commitment and Operations - Over the past three and a half years, Gauzy has invested over $50 million in its operations in France [3]. - The company is working with the court-appointed administrators to resolve the insolvency matter while maintaining normal operations to meet customer demand [2][3]. Group 3: Company Background - Gauzy Ltd. is a fully-integrated company focused on vision and light control technologies, with operations in multiple countries including Germany, the United States, and China [6]. - The company serves leading brands across various industries, including aeronautics and automotive, in over 60 countries [6].