Methode Electronics (MEI) Class Action: Shareholder Alert

Author: Lucas Young Updated: 09-20-2024 10:32 AM

Methode Electronics (MEI) Faces Class Action Lawsuit

Shareholder rights law firm Johnson Fistel, LLP, has announced that a class action lawsuit has been initiated for investors of Methode Electronics, Inc. (MEI). This follows reports of significant operational challenges within the company.

Challenges During Transition

Methode Electronics has faced substantial hurdles as it shifts from its traditional production methods to a new model that emphasizes variety and lower volume output. Many skilled employees were lost during the COVID-19 pandemic which has hampered this transition at its Monterrey facility.

Production Planning Issues

The company attempted to diversify its offerings beyond General Motors center console production. However, these efforts were marred by constant setbacks such as production planning issues, inventory shortages, and difficulties with suppliers. These factors collectively led to execution problems regarding its strategic initiatives.

Manufacturing Shortcomings

Moreover, the manufacturing systems at the Monterrey site have been reported to suffer from various systemic issues—ranging from incorrect coding to shipping errors and poor quality controls. These logistical defects have led to significant disruptions, delaying new electric vehicle (EV) initiatives from coming to market, which in turn impacted revenue generation.

Investment and Market Outlook

As a consequence of these operational challenges, Methode Electronics has struggled to meet its previously communicated financial forecasts. Specifically, the company is not projected to achieve its diluted earnings-per-share guidance or meet a claimed organic sales growth rate disclosed to investors.

Investor Actions and Important Deadlines

Investors who experienced losses during the class period from June 23, 2022, to March 6, 2024, have until October 25, 2024, to apply to serve as lead plaintiff in the class action. Acting as a lead plaintiff provides the opportunity for one investor to direct the lawsuit on behalf of all affected investors.

Next Steps for Shareholders

Those interested in participating should note that joining as a lead plaintiff is not a prerequisite for sharing in any potential recovery from the lawsuit. Thus, shareholders are encouraged to take prompt action.

About Johnson Fistel, LLP

Johnson Fistel, LLP is a recognized law firm focusing on shareholder rights and securities class action lawsuits. With offices in several states, they represent individual as well as institutional investors, and they assist foreign investors who engage with U.S. markets. Those seeking guidance related to recent stock declines and recovery options can explore the firm’s offerings.

Frequently Asked Questions

What is the current class action about Methode Electronics?

The class action targets operational issues faced by Methode Electronics that may have resulted in significant losses for investors.

Who can join the class action lawsuit?

Shareholders who incurred losses during the class period from June 23, 2022, to March 6, 2024, may participate.

What are the key deadlines for this class action?

Investors must apply to act as lead plaintiff by October 25, 2024.

What types of issues are being raised in the complaint?

The lawsuit highlights misleading statements regarding production deficiencies and financial guidance that lacked factual support.

Can I still recover losses if I do not become a lead plaintiff?

Yes, participation as a lead plaintiff is not necessary to receive potential recovery from the lawsuit.

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