Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 23, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Mobileye Global Inc. (NASDAQ: MBLY) investors that a lawsuit was filed on behalf of investors that purchased Mobileye securities between January 26, 2023 and January 3, 2024 inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
As per the complaint, on January 4, 2024, Mobileye issued a press release revealing that it had discovered a surplus inventory situation, comprising an estimated 6-7 million units of EyeQ SoCs held by customers. Mobileye attributed this to supply chain challenges in 2021 and 2022, along with lower-than-expected production at certain OEMs in 2023. The company also acknowledged that these lower volumes in the EyeQ® SoC business would temporarily affect profitability. Furthermore, Mobileye provided a preliminary financial outlook for 2024, forecasting a roughly 50% decrease in Q1 revenue compared to the first quarter of 2023, which generated $458 million in revenue.
The plaintiff alleges that throughout the class period, the defendants did not disclose the following information to investors:
The Company's Tier 1 customers had purchased excess inventory during fiscal 2023 to prevent shortages, as experienced during supply chain constraints in 2021 and 2022.
Consequently, the Company's customers had accumulated surplus inventory, including approximately 6-7 million units of EyeQ SoCs.
Due to this inventory buildup, there was a substantial risk that Tier 1 customers would reduce their product purchases, potentially adversely affecting the Company's fiscal 2024 financial results.
The lawsuit alleges that throughout the Class Period, LivePerson made false or misleading statements and failed to disclose material information. Specifically, the defendants did not reveal that the company's disclosure controls and procedures contained a material weakness, that it maintained deficient internal controls over financial reporting, that its Q3 2022 financial statements did not disclose the suspension of Medicare reimbursements for WildHealth, and consequently, that LivePerson had overstated its future financial position and prospects.
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The Portnoy Law Firm represents investors in pursuing claims caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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