1. Gauzy faces potential class action due to misleading financial statements. 2. Three subsidiaries in France entered insolvency proceedings on November 14, 2025. 3. Gauzy's share price dropped nearly 50% after insolvency announcement. 4. Investors can join the class action before the February 6, 2026 deadline. 5. Faruqi & Faruqi is leading the investigation into Gauzy's financial practices.
FAQ
Why Very Bearish?
The announcement of insolvency proceedings greatly undermines investor confidence and company value.
How important is it?
The class action and insolvency issues represent a significant and immediate threat to GAUZ’s financial stability.
Why Short Term?
Given the financial difficulties disclosed, markets are likely to react immediately.
Faruqi & Faruqi, LLP Investigates Gauzy Ltd. Amid Potential Securities Violations
NEW YORK, Dec. 10, 2025 (GLOBE NEWSWIRE) — Faruqi & Faruqi, LLP, a prominent national securities law firm, is launching an investigation into potential claims on behalf of investors in Gauzy Ltd. (NASDAQ: GAUZ). Investors who acquired securities in Gauzy between March 11, 2025, and November 13, 2025, are encouraged to contact the firm to discuss their legal rights. This comes in light of significant developments affecting the company's financial standing.
Class Action Deadline and Details
Faruqi & Faruqi reminds investors of an approaching deadline. Interested parties must file to serve as lead plaintiff in a federal securities class action against Gauzy by February 6, 2026. The firm has a track record of successfully recovering hundreds of millions of dollars for investors since its inception in 1995. For more information, please visit www.faruqilaw.com.
Allegations of Misleading Statements
According to the complaint, Gauzy’s executives may have violated federal securities laws by making false and misleading statements regarding the company’s financial stability. Key allegations include:
- Three French subsidiaries were unable to meet their debt obligations.
- Insolvency proceedings were likely to be initiated.
- A potential default on existing senior secured debt facilities was imminent.
- Positive statements about the company’s prospects were materially misleading.
Impact on Stock Price
On November 14, 2025, before the market opened, Gauzy announced that the Commercial Court of Lyon had initiated Redressement Judiciaire, marking insolvency proceedings for three of its subsidiaries. This news resulted in a sharp decline in Gauzy’s stock price, falling by $2.00 per share (nearly 50%) over two trading days, closing at $2.02 on November 17, 2025.
Becoming a Lead Plaintiff
The role of lead plaintiff in the class action is designated for the investor who has the largest financial interest and is typical of other class members. Any eligible investor can move to serve as lead plaintiff through their preferred counsel or opt to remain an absent class member. Participation as lead plaintiff does not impact one’s ability to recover any potential damages.
How to Contact Faruqi & Faruqi
Faruqi & Faruqi, LLP is also reaching out to anyone who may have information regarding Gauzy’s actions, including whistleblowers, former employees, and shareholders. Interested individuals can learn more about the ongoing class action by visiting www.faruqilaw.com/GAUZ or contacting partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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