SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of Microvast Holdings, Inc. - MVST

NEW YORK, Jan. 14, 2024

The investigation concerns whether Microvast and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.   

[Click here for information about joining the class action]  

In October 2022, the United States Department of Energy ("DOE") conditionally selected Microvast for a proposed $200 million grant to help fund a proposed polyaramid separator production facility (the "Grant").  Then, on May 22, 2023, after the market closed, Reuters reported that the DOE would not award Microvast the Grant.  In a call with congressional staff that evening, the DOE confirmed negotiations with Microvast concerning the Grant had been cancelled.  While the DOE declined to comment publicly on why it decided to cancel negotiations with any applicant, it did state that it "maintains a rigorous review process prior to the release of any awarded funds, and it is not uncommon for entities selected to participate in award negotiations under a DOE competitive funding opportunity to not ultimately receive an award[.]"  This news came after months of political fervor over the Company's alleged ties to China. 

On this news, Microvast's stock price fell $0.80 per share, or 36%, to close at $1.40 per share on May 23, 2023. 

Then, on November 21, 2023, J Capital Research published a report on Microvast entitled "MVST: Empty Facilities and a Grant Loss That Was Probably Hidden: Another China Hustle" (the "Report").  The Report alleged the Company knew the Grant had been rescinded for months prior to Reuters reporting but failed to inform investors.  The Report alleged further that "the majority of MVST's sales may be fake," that "Chinese customers account for 57% of revenue in 2023" but drone footage shows the Company's Chinese factory "shows almost no activity," that the Company "has disappeared from Chinese procurement lists" and "local competitors say the company is not making discernible sales" and that the Company's reported backlog was "dubious."