Methode Execs Sued by Investor On Poor Sales Weighing Stock Down

Methode Electronics Inc. leadership misrepresented its automotive component sector’s growth and hid operational issues that impacted the manufacturing company’s financials, causing a prolonged stock decline and exposing it to litigation, a shareholder derivative lawsuit says.

A year of disappointing announcements related to financial disclosures and executive departures culminated in Methode revealing that any “previous guidance provided by the company should no longer be relied upon,” shareholder Kevin D. Murphy said in his complaint filed in the US District Court for the Northern District of Illinois Tuesday. It also led to a 31% stock decline on March 7, 2024, according to ...