| COMPANY |
Mobileye Global Inc. |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
23-cv-00310 |
| JUDGE |
The Hon. Denise Cote |
| CLASS PERIOD |
January 26, 2023 through January 3, 2024 |
| SECURITY TYPE |
Securities |
Mobileye investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than March 18, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Mobileye Global Inc. (“Mobileye”) (NASDAQ: MBLY) securities between January 26, 2023 and January 3, 2024, both dates inclusive (the “Class Period”).
Case Background:
The Class Period begins on January 26, 2023, when Mobileye issued a press release to announce its fourth quarter and full year 2022 results. In the release, Mobileye touted its purported strong financial performance and its expected strong performance for 2023. Thereafter, and throughout the Class Period, Mobileye also assured investors that management is monitoring inventory levels on an ongoing basis to mitigate any supply chain constraints.
The truth was revealed on January 4, 2024, when, before the market opened, Mobileye issued a press release and disclosed that the company 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.”
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.
The complaint alleges that, throughout the Class Period, 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: (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, Defendant’s positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.