The Class Period commences on October 19, 2022, when Microvast Holdings, Inc. announced that, “Microvast’s thermally stable polyaramid separator manufacturing plant proposal was selected as a recipient of a $200 million grant from the U.S. Department of Energy’s [“DOE”] Battery Materials Processing and Battery Manufacturing initiative.”

The truth regarding the DOE grant began to emerge on May 22, 2023, when Reuters reported that the DOE would not award Microvast the $200 million grant.

Following this news, Microvast’s share price fell $0.80, or 36%, to close at $1.40 per share on May 23, 2023, on unusually heavy trading volume.

Then, on November 21, 2023, J Capital Research published a report that alleged that Microvast must have been aware of the DOE’s decision to not award the grant months before it was disclosed by the company. Further, the report alleged, among other things, that Microvast’s sales and backlog were “dubious,” and that the majority of Microvast’s sales “may be fake” because Microvast’s Chinese customers account for 57% of revenue in 2023, but the China factory shows almost no activity.

Following this news, Microvast’s share price fell $0.33, or 25%, to close at $0.98 per share on November 21, 2023, on unusually heavy trading volume.

According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) there was a reasonable likelihood that Microvast would not be awarded the DOE grant after due diligence was performed; (2) negotiations between Microvast and the DOE had ceased and the grant had been rescinded; and (3) Microvast misrepresented the nature and profitability of its businesses and partnerships.

Investors who purchased or acquired Microvast securities between October 19, 2022 and November 20, 2023 may no later than February 5, 2024, seek to be appointed as a lead plaintiff representative of the class.