SHAREHOLDER ALERT: Pomerantz Law Firm Announces the Filing of a Class Action Against Methode Electronics, Inc. - MEI
NEW YORK, Sept. 9, 2024 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Methode Electronics, Inc.. ("Methode" or the "Company") (NYSE: MEI). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Methode and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until October 25, 2024, to ask the Court to appoint you as Lead Plaintiff for the class if you are a shareholder who purchased or otherwise acquired Methode securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On March 9, 2023, Methode issued a release announcing the Company's financial results for its third fiscal quarter of 2023 (the "3Q23 Release"), lowering its 2023 diluted earnings per share ("EPS") guidance to a range of $2.50 to $2.60 (down from $2.70 to $2.90). A March 10, 2023 Jefferies analyst report blamed the miss in part on "likely EV pushouts," stating that "customer production ramp delays will likely weigh on timing of sales contribution."
On this news, Methode's stock price fell $6.25 per share, or 13.13%, over the following three trading sessions, to close at $41.36 per share on March 13, 2023.
Then, on June 12, 2023, Methode issued a press release announcing preliminary 2023 financial results, stating that the Company expected to report below-range annual diluted EPS of just $2.10 to $2.14 (compared to guidance of $2.50 to $2.60, which had already been lowered from initial projections). The release also provided preliminary fiscal 2024 net sales guidance of $1.15 billion to $1.2 billion and diluted EPS of $1.55 to $1.75, signaling continued deterioration "due to additional costs to support new program launches and the impact from program roll-offs," among other factors.
On this news, Methode's stock price fell $12.30 per share, or 27.29%, over the following trading sessions, to close at $32.77 per share on June 23, 2023.
On September 7, 2023, Methode issued a press release announcing the Company's financial results for its first fiscal quarter of 2024 (the "1Q24 Release"), stating that "operational inefficiencies" in the Company's North American operations and accelerated expenses related to new program launches had negatively impacted earnings for the quarter and were expected to linger into the second quarter. The operational issues included both labor and vendor problems and had led to planning deficiencies, inventory shortages, unrecoverable spot purchases, premium freight, and delayed shipments. The release also lowered expected 2024 net sales to a range of $1.14 billion to $1.18 billion (down from $1.15 billion to $1.2 billion) and slashed expected diluted EPS to a range of $0.80 to $1 (down from $1.55 to $1.75).
On this news, Methode's stock price fell $6.67 per share, or 22.23%, to close at $23.33 per share on September 7, 2023.
On December 7, 2023, Methode issued a release announcing the Company's financial results for its second fiscal quarter of 2024 (the "2Q24 Release"), revealing that the Automotive Segment had generated only $154.3 million in net sales and suffered a $61.5 million loss from operations during the quarter. The release also lowered the Company's 2024 diluted EPS guidance to a range of negative $1.40 to negative $1.14 (down from $0.80 to $1). The release similarly lowered Methode's 2025 revenue guidance to $1.15 billion to $1.25 billion (down from $1.25 billion to $1.35 billion) and its expected 2025 income from operations to a range of 6% to 8% as a percentage of net sales (down from the prior range of 11% to 12%). The release further revealed that the operational challenges at the Company's Monterrey facility were far greater than previously reported and expected to impact the second half of the fiscal year, as the Company's vaunted EV awards suffered launch setbacks and significant cost overruns. The release also disclosed a $56.5 million goodwill impairment in the Company's North American and European Automotive Reporting Units.
On this news, Methode's stock price fell $2.87 per share, or 11.77%, over the following two trading sessions, to close at $21.52 per share on December 8, 2023.
Finally, on March 7, 2024, Methode issued a release announcing the Company's financial results for its third fiscal quarter of 2024. The Automotive Segment generated only $139.7 million in net sales for the quarter and suffered an $11 million loss from operations. The release withdrew all of Methode's prior guidance due in substantial part to the "operational challenges" at the Monterrey facility and stated that defendants' prior statements regarding the guidance should no longer be relied upon. The release further announced urgent actions being taken by the Company to reduce costs, such as by reducing headcount and discretionary expenses and by disposing of non-critical assets.
On this news, Methode's stock price fell $6.55 per share, or 31.13%, to close at $14.49 per share on March 7, 2024.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980
SOURCE Pomerantz LLP
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