Lawsuit filed for Investors who lost money with shares of Methode Electronics, Inc. (NYSE: MEI)

An investor, who purchased shares of Methode Electronics, Inc. (NYSE: MEI), filed a lawsuit over alleged violations of Federal Securities Laws by Methode Electronics, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Methode Electronics, Inc. (NYSE: MEI) have certain options and for certain investors are short and strict deadlines running. Deadline: October 25, 2024. NYSE: MEI investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

On July 14, 2023, Methode Electronics, Inc. announced that "[o]n July 10, 2023, Joseph Khoury was placed on leave from his position as Chief Operating Officer." The announcement added that "[Khoury's] powers, authority and duties as such officer of the Company were suspended."
On December 7, 2023, Methode Electronics, Inc. announced that "[o]n December 5, 2023, the Board of Directors of Methode Electronics, Inc. (the 'Company') removed Joseph Khoury from his position as Chief Operating Officer of the Company, and Mr. Khoury was terminated as an employee of the Company's Egyptian subsidiary and is no longer associated with the Company." The announcement explained that "multiple other officers of the Company have assumed Mr. Khoury's management duties during this period, while remaining in their current positions and as a result, the Company has eliminated the position of Chief Operating Officer for the present time."

Then on March 7, 2024, Methode Electronics, Inc. reported financial results for the third quarter of fiscal 2024 ended January 27, 2024. Methode Electronics, Inc. reported Q3 non-GAAP EPS of -$0.33 missing estimates by $0.41 and revenue of $259.5M missing estimates by $28.53 million. The Company said due to various market and operational challenges the business was facing, it would suspended forward-looking guidance; and all earlier guidance provided should no longer be relied upon.

Shares of Methode Electronics, Inc. (NYSE: MEI) declined from $51.38 per share on February 03, 2023, to $11.26 per share on March 18, 2024.

The plaintiff claims that between June 23, 2022 and March 6, 2024, the defendants made false and/or misleading statements and/or failed to disclose that: (i) 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; (ii) 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; (iii) 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; (iv) 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 (v) 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.

Those who purchased shares of Methode Electronics, Inc. (NYSE: MEI) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.