SAN FRANCISCO, Feb. 02, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Mobileye Global Inc. (NASDAQ: MBLY) investors who suffered substantial losses to submit your losses now.
Class Period: Jan. 26, 2023 – Jan. 3, 2024
Lead Plaintiff Deadline: Mar. 18, 2024
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Mobileye Global Inc. (MBLY) Securities Fraud Class Action:
Securities analysts at RBC lowered its estimates for Mobileye’s 2024 Advanced Driver-Assistance System (ADAS) revenues by 36% and cut its price target for MBLY from $54 to $45.
The dim projections stem from the Company’s Jan. 4, 2024 disclosure that Mobileye had “become aware” of a build-up of excess inventory including an estimated 6-7 million units of EyeQ SoCs held by customers. Mobileye attributed this result to “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.” Additionally, Mobileye disclosed that “the lower-than-expected volumes in the EyeQ® SoC business will have a temporary impact on our profitability” and that Mobileye “expect[s] Q1 revenue to be down approximately 50%, as compared to the $458 million revenue generated in the first quarter of 2023.”
This news sent the price of Mobileye shares crashing $9.75 (or nearly 25%) lower on Jan. 4, 2024
Mobileye’s warning on its results for 2024 due to its customers’ high inventory levels did not just elicit negative analyst commentary. The surprising disclosure and corresponding stock drop has also sparked a securities class action.
The complaint alleges that Mobileye misrepresented and concealed that: (1) to avoid the shortages experienced amid supply chain constraints in 2021 and 2022, its Tier 1 customers purchased inventory in excess of fiscal 2023 demand; (2) as a result, its customers had excess inventory, including approximately 6-7 million units of EyeQ System-on-Chips systems (“EyeQ SoCs”); and (3) due to the customers’ inventory build-up, there was a significant risk that they would buy less product during the company’s fiscal 2024, which would negatively impact its 2024 financial results.
"We are investigating whether Mobileye may have misled investors about its sales strategy,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Mobileye and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »
If you’d like more information and answers to frequently asked questions about the Mobileye case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Mobileye should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email MBLY@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
