Microvast Holdings, Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Microvast Holdings, Inc. (MVST).

If you purchased or held Microvast Holdings securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Microvast Holdings

Microvast Holdings, Inc. designs, develops, and manufactures lithium-ion battery solutions, including battery cells, modules, packs, and components. Microvast operates globally, with facilities in the United States (Clarksville, Tennessee; Lake Mary, Florida), Germany (Berlin), and China (Huzhou).

As of March 2025, the board was chaired by CEO Yang Wu, with other directors including Arthur Wong (Audit Chair), Wei Ying, Isida Tushe (President/General Counsel), and Yixin Pan.

What's Being Investigated?

The investigation centers on allegations that Microvast and certain executives may have failed to disclose material information to investors, particularly regarding a proposed $200 million U.S. Department of Energy (DOE) grant and the company’s reported operations in China.

On November 21, 2023, J Capital Research published a report alleging that Microvast knew for months that the DOE grant for a polyaramid separator production facility had been rescinded, but did not inform investors until after a May 2023 Reuters article. The report further alleged that much of Microvast’s reported sales may not be genuine, that its Chinese factory appeared largely inactive, and that its reported backlog was questionable.

Following these allegations, a securities class action lawsuit was filed against Microvast and certain executives, alleging violations of federal securities laws. The court overseeing the case recently denied the company’s motion to dismiss in part, allowing the litigation to proceed.

Key Timeline

• October–November 2022: Microvast announced it was “selected” for negotiation of a $200 million DOE grant. Investors say these communications were material to the company’s prospects.
• May 22, 2023: Reuters reported that the DOE had cancelled grant negotiations with Microvast. Investors contend this was the first public indication of the grant’s rescission.
• May 24, 2023: Microvast issued a press release responding to the DOE’s decision, stating the company was surprised by the withdrawal.
• November 21, 2023: J Capital Research published a report alleging that Microvast concealed the grant loss for months and raised questions about the authenticity of reported China revenues and backlog.
• August 22, 2025: The court in the securities class action denied Microvast’s motion to dismiss in part, allowing the case to move forward.

Why Investors May Be Concerned

Investors and analysts have raised several concerns, including:

• Alleged misleading statements or omissions: Plaintiffs contend Microvast may have failed to promptly disclose the DOE grant rescission and may have made questionable statements about its China operations and sales backlog.
• Internal-controls and oversight: The company has disclosed material weaknesses in internal controls, and investors argue that the board and audit committee may not have adequately monitored mission-critical risks, such as government funding and revenue recognition.
• Board and officer independence: Some directors and officers, including CEO Yang Wu, have been identified as having potential conflicts of interest or dual roles, which plaintiffs argue could affect oversight.
• Potential conflicts and related-party transactions: The CEO has provided loans to the company, and certain directors have been nominated under special rights, raising questions about board independence.

What Investors Can Watch Next

• The next major milestone is the ongoing securities class action in federal court, which is proceeding after the partial denial of the motion to dismiss.
• Investors may also monitor for further SEC filings, press releases, or disclosures regarding internal controls, project impairments, or governance changes.
• No specific upcoming earnings dates or announced governance reforms are cited in the current public record.

Your Rights and Next Steps

This is an active investigation into potential breaches of fiduciary duty and other alleged misconduct at Microvast Holdings, Inc. If you owned Microvast stock during the relevant period, you may have the right to:

• Request company records under Section 220 of the Delaware General Corporation Law to investigate possible mismanagement or oversight failures.
• Join as a plaintiff in a derivative lawsuit, which seeks to recover damages or obtain governance reforms for the benefit of the company and its shareholders.
• Participate in the ongoing securities class action if you meet the eligibility criteria.

You May Be Entitled to Compensation

Securities investigations are time sensitive. If you purchased or held Microvast Holdings securities and suffered losses, you may be eligible to join this investigation and seek compensation for harm to the company. To protect your rights and ensure you are included in any potential recovery or governance reforms, please complete the form below to join the investigation.