Case Summary

Mobileye Global

NASDAQ: MBLY

Case Details

  • McAuliffe v. Mobileye Global Inc. et al.
  • Class Period:January 26, 2023 - January 03, 2024
  • Date Filed:January 16, 2024
  • Jurisdiction:U.S. District Court, Southern District of New York
  • Docket Number: 1:24-cv-00310
  • Lead Plaintiff Deadline: March 18, 2024
Days Left to
Seek Plaintiff
25

Overview

A class action lawsuit has been filed against Mobileye Global, Inc., (“Mobileye” or the “Company”) (NASDAQ: MBLY) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934. The lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired publicly traded Mobileye securities between January 26, 2023, and January 3, 2024, both dates inclusive (the “Class Period”) and investors have until March 18, 2024, to seek appointment as lead plaintiff of the Mobileye class action lawsuit.

Mobileye is a technology company engaged in the development and deployment of advanced driver assistance systems (“ADAS”) and autonomous driving software and hardware products. The Company generates the majority of its revenue from the sale of EyeQ System-on-Chip (“SoCs”). 1 The EyeQ SoCs is a computer chip used for driver-assistance and partial autonomous driving. Mobileye sells EyeQ SoCs to Tier 1 automotive suppliers who in turn sell to Original Equipment Manufacturers (“OEMs”).

On January 4, 2024, before the market opened, Mobileye issued a press release disclosing that it had “become aware” of a build-up of excess inventory including an estimated 6-7 million units of EyeQ SoCs held by customers. The Company stated this was a result of supply chain constraints in 2021 and 2022 and a desire to avoid part shortages and lower than-expected production at certain OEM’s during 2023. The Company then disclosed the lower-than-expected volumes in the EyeQ SoC business will have a temporary impact on our profitability. The Company also provided a preliminary financial outlook for 2024, in which it stated that it expects Q1 revenue to be down approximately 50%, as compared to the $458 million revenue generated in the first quarter of 2023. On this news, Mobileye’s stock price fell $9.75 per share, or 24.5%, to close at $29.97 per share on January 4, 2024, on unusually heavy trading volume.

The lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) that, to avoid the shortages experienced amid supply chain constraints in 2021 and 2022, the Company’s Tier 1 customers had purchased inventory in excess of demand during fiscal 2023; (2) that, as a result, the Company’s customers had excess inventory on hand, including approximately 6-7 million units of EyeQ SoCs; (3) that, due to the build-up of inventory, there was a significant risk that the Tier 1 customers would buy less product, thus adversely impacting the Company’s fiscal 2024 financial results; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

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If you purchased or otherwise acquired publicly traded Mobileye (NASDAQ: MBLY) securities between January 26, 2023, and January 3, 2024, both dates inclusive, and suffered substantial losses, 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 investors@dicellolevitt.com. 

Again, the deadline to apply to the Court to serve as a lead plaintiff in the Mobileye lawsuit is March 18, 2024.

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