Investor Alert: Methode Electronics, Inc: Johnson Fistel, PLLP Investigates Claims on Behalf of Investors
Johnson Fistel, PLLP is investigating claims on behalf of Methode Electronics, Inc. against certain of its officers and directors.
If you are a current, long-term shareholder of the company, continuously holding your shares since June 23, 2022, you may have standing to hold the company harmless from the alleged harm caused by the Company’s officers and directors by making them personally responsible. You may also be able to assist in reforming the Company’s corporate governance to prevent future wrongdoing.
Previously a class action complaint was filed against the company. The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) Methode had lost highly skilled and experienced employees during the COVID-19 pandemic necessary to successfully complete Methode’s transition from its historic low mix, high volume production model to a high mix, low production model at its Monterrey facility; (2) Methode’s 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’s strategic plans; (3) Methode’s 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 had fallen substantially behind on the launch of new EV programs out of its Monterrey facility, preventing Methode from timely receiving revenue from new EV program awards; and (5) as a result, Methode 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.