SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Mobileye Global Inc. of Class Action Lawsuit and Upcoming Deadlines – MBLY

NEW YORK, March 15, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Mobileye Global Inc. (“Mobileye” or the “Company”) (NASDAQ: MBLY) and certain officers. The class action, filed in the United States (“U.S.”) District Court for the Southern District of New York, and docketed under 24-cv-01390, is on behalf of persons and entities that purchased or otherwise acquired Mobileye securities between January 26, 2023 and January 3, 2024, inclusive (the “Class Period”).  Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).

If you are a shareholder who purchased or otherwise acquired Mobileye securities during the Class Period, you have until March 18, 2024 to ask the Court to appoint you as Lead Plaintiff for the class.  A copy of the Complaint can be obtained at www.pomerantzlaw.com.   To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

[Click here for information about joining the class action]

Mobileye is a technology company engaged in the development and deployment of advanced driver assistance systems (“ADAS”) and autonomous driving software and hardware products.  The Company generates the majority of its revenue from the sale of EyeQ System-on-Chips (“SoCs”).   EyeQ SoCs are a computer chip used for driver-assistance and partial autonomous driving.  Mobileye sells EyeQ SoCs to Tier 1 automotive suppliers who in turn sell to Original Equipment Manufacturers (“OEMs”).

On January 4, 2024, before the market opened, Mobileye issued a press release disclosing that it had “become aware” of a build-up of excess inventory including an estimated 6 to 7 million units of EyeQ SoCs held by customers.  The Company stated this was a result of “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.”  The Company then disclosed that “the lower-than-expected volumes in the EyeQ® SoC business will have a temporary impact on our profitability[.]”  The Company also provided a preliminary financial outlook for 2024, in which it stated that it “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, on unusually heavy trading volume.

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 that: (i) 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; (ii) as a result, the Company’s customers had excess inventory on hand, including approximately 6 to 7 million units of EyeQ SoCs; (iii) 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 (iv) 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.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.

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CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980