Overview

A class action lawsuit has been filed against Methode Electronics, Inc. (“Methode” or the “Company”) (NYSE: MEI) and certain of the Company’s former and current senior executive officers alleging violations of the federal securities laws.  The Methode class action lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Methode common stock between June 23, 2022, and March 6, 2024, both dates inclusive (the “Class Period”).  Investors have until October 25, 2024, to seek appointment as lead plaintiff of the Methode class action lawsuit.

Methode designs, engineers, and manufactures custom-engineered solutions for original equipment manufacturers (“OEM”).  The Company’s products are found in the end markets of transportation, cloud computing infrastructure, construction equipment, consumer appliances, and medical devices.  Methode maintains manufacturing facilities in the United States, Europe, China, Egypt, Malta, and Mexico.

The Company breaks its operating results into four reportable segments: (1) Automotive; (2) Industrial; (3) Interface; and (4) Medical.  Methode’s Automotive segment (the “Automotive Segment”) generates the majority of the Company’s revenues.  For the fiscal year ended April 30, 2022, the Automotive Segment accounted for over 67% of Company net sales.  The Automotive Segment supplies electronic and electro-mechanical devices and related products – such as integrated center consoles, hidden switches, ergonomic switches, transmission lead-frames, LED-based lighting, and sensors – to automobile OEMs or their suppliers.

In November 2010, Methode received a significant boost when the Automotive Segment was awarded the General Motors (“GM”) center console program.  Starting in 2014, the program was projected to add $100 million in revenue per year.  The award contributed to the critical importance of center console production for the Company’s business, revenue, and prospects.  For example, for fiscal year 2016 (the year that the GM award achieved full production) sales to GM represented approximately 50% of the Company’s consolidated net sales, which consisted primarily of sales to GM of integrated center consoles for use in trucks and SUVs.  The Company’s center console production was substantially done out of its Monterrey, Mexico facility.

As alleged in the Methode class action lawsuit, by 2020, Methode began transitioning away from its reliance on traditional integrated center stack units due to changes in automotive trends and technologies.  Specifically, car manufacturers had begun using fewer designs featuring traditional buttons and knobs and instead used displays with a greater focus on integrating control functions into the display itself, such as touch screen infotainment applications.

The Methode class action lawsuit alleges that Defendants throughout the Class Period made 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 GM 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 three-year 6% organic sales compound annual growth rate represented to investors, and such estimates lacked a reasonable factual basis.

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If you purchased or otherwise acquired Methode common stock between June 23, 2022, and March 6, 2024, both dates inclusive, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as a lead plaintiff in the Methode class action lawsuit is October 25, 2024.