A securities class action has been filed in the USDC — N.D.IL. against Method Electronics, Inc. (MEI) (“Methode” or the “Company”), on behalf of all persons or entities that purchased or otherwise acquired Methode common stock between June 23, 2022and March 6, 2024, both dates inclusive (the “Class Period”).
Methode designs, engineers, and manufactures custom-engineered solutions for OEMs. The Company’s products are found in the end markets of transportation, cloud computing infrastructure, construction equipment, consumer appliances, and medical devices. Methode maintains manufacturing facilities in the United States, Europe, China, Egypt, Malta, and Mexico.
The Complaint alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
(1) Methode Electronics had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode Electronics’ transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility;
(2) Methode Electronics’ attempts to replace its General Motors center console production with more diversified, specialized products for a wider array of vehicle manufacturers and OEMs, in particular in the electric vehicle (“EV”) space, had been plagued by production planning deficiencies, inventory shortages, vendor and supplier problems, and, ultimately, botched execution of Methode Electronics’ strategic plans;
(3) Methode Electronics’ manufacturing systems at its critical Monterrey facility suffered from a variety of logistical defects, such as improper system coding, shipping errors, erroneous delivery times, deficient quality control systems, and failures to timely and efficiently procure necessary raw materials;
(4) Methode Electronics had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode Electronics from timely receiving revenue from new EV program awards; and
(5) as a result, Methode Electronics was not on track to achieve the 2023 diluted earnings-per-share guidance or the 3-year 6% organic sales compound annual growth rate represented to investors and such estimates lacked a reasonable factual basis, thereby harming investors.
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