Microvast Set to Face Investor Row Over DOE Grant, Plant (1)

Microvast Holdings Inc. must defend shareholder allegations that the battery maker misled them over receiving a grant from the US Energy Department and the readiness of its Clarksville, Tenn., facility.

The investors sufficiently bolstered an inference of the executives’ mental state to deceive them around the $200 million grant because of its importance to the company, Judge Andrew S. Hanen said. The money “would have matched an entire year’s worth of revenue and would have been equivalent to 22 times the yearly profit,” the US District Court for the Southern District of Texas judge said.

And the investors adequately ...