NEW YORK — Investors who acquired shares of Methode Electronics, Inc. (NYSE: MEI) during a specific period are now being reminded of an impending lead plaintiff deadline in a class action lawsuit that addresses alleged misinformation and subsequent financial losses. The Rosen Law Firm, a global advocate for investors’ rights, has issued this call to action for all who bought the stocks between June 23, 2022, and March 6, 2024.
Potential claimants have until October 25, 2024, to move the court to seek a lead plaintiff position in the ongoing litigation. Serving as a lead plaintiff requires representing other members of the investor class by directing the legal strategy as the case progresses.
The lawsuit claims that Methode Electronics, a notable component manufacturer for automotive and electronic applications, failed to reveal significant operational setbacks primarily touching its facility in Monterrey, Mexico. The company purportedly struggled with the transition from a production model of low mix, high volume to high mix, low volume, a shift deemed crucial for staying competitive, especially in the burgeoning electric vehicle (EV) sector.
Key allegations include the loss of essential, skilled employees due to the COVID-19 pandemic, which hindered the company’s strategic shift. Additionally, Methode is accused of inadequate production planning, inventory mismanagement, and supplier issues that resulted in significant operational failings.
The allegations extend to state that these defects at the Monterrey plant contributed to shipping errors, deficient quality control, and delayed procurement of raw materials essential for launching new EV programs. Consequently, the delays allegedly affected the company’s ability to begin earning revenues from these new ventures as projected, strongly impacting its financial forecasts.
Investors were supposedly misled, as the company continued to project an achievable 6% organic sales compound annual growth rate (CAGR) and diluted earnings per share (EPS) targets for 2023, which were questioned in the lawsuit for lacking a reasonable basis given the operational challenges.
Despite these severe allegations, no class has yet been certified in this lawsuit. Until such certification and the appointment of lead plaintiff occur, represented parties are not officially represented by the law unless they appoint an attorney independently.
For investors wishing to participate or lead the Methode class action lawsuit, contacting designated legal representatives is advised. The legal process allows affected investors to potentially recover their investments without direct costs through contingency fee arrangements, where legal fees are only collected as a portion of any financial settlement or court-awarded damages.
It’s also important for investors to understand that opting out from the lead plaintiff position does not prevent them from partaking in any possible recoveries. Should the case succeed, all affected investors who have filed timely claims may benefit from the outcome. Meanwhile, potential plaintiffs and interested parties are encouraged to stay updated as the case progresses.
While previous outcomes in similar cases provide no assurance of the results in ongoing or new legal actions, they often offer useful precedents on which law firms like The Rosen Law Firm base their litigation strategies.