Maravai LifeSciences (MRVI) Reports Weak Q4, Faces Investor Class Action – Hagens Berman

MRVI Investors with Losses Encouraged to Contact the Firm

/EIN News/ -- SAN FRANCISCO, April 21, 2025 (GLOBE NEWSWIRE) -- Maravai LifeSciences Holdings, Inc. (NASDAQ: MRVI) reported its fourth-quarter 2024 earnings, missing analyst expectations and prompting a significant downward revision of its price target by at least one firm. The company is also facing a securities class action lawsuit alleging improper accounting.

Hagens Berman is investigating the alleged claims and urges Maravai investors who suffered substantial losses to submit your losses now.

Class Period: Aug. 7, 2024 – Feb. 24, 2025
Lead Plaintiff Deadline: May 5, 2025
Visit: www.hbsslaw.com/investor-fraud/mrvi
Contact the Firm Now: MRVI@hbsslaw.com
   844-916-0895

Disappointing Q4 Results and Analyst Downgrade:

The San Diego-based company, which provides life science reagents and services, posted an adjusted loss per share of $0.06, wider than the $0.04 loss expected by analysts. Quarterly revenue came in at $56.6 million, slightly below the $56.67 million consensus forecast.

For the full year, Maravai reported revenue of $259 million, aligning with its previously issued guidance. However, the company’s GAAP net loss widened considerably to $260 million, compared to a $138 million loss in 2023.

The disappointing results reportedly led Stifel analysts to adjust their outlook on Maravai. The firm slashed its price target on the stock by 50%, reducing it to $5.00 from the prior $10.00. This significant reduction in the price target reflects concerns about Maravai's near-term financial outlook. Analysts cited weaker-than-expected fourth-quarter revenues and EBITDA, which fell short of market predictions by $7 million, as key factors influencing the revised valuation. The downgrade suggests a reassessment of Maravai's growth prospects and profitability in the current market conditions.

Securities Class Action:

In addition to its disappointing financial results, Maravai is facing a securities class action lawsuit. The lawsuit alleges that Maravai made false and/or misleading statements and/or failed to disclose that:

• Maravai lacked adequate internal controls over financial reporting related to revenue recognition;
• As a result, Maravai inaccurately recognized revenue on certain transactions during fiscal 2024; and
• Maravai’s goodwill was overstated.
  

The lawsuit further alleges that on February 25, 2025, Maravai revealed it was postponing its fiscal 2024 earnings release and would delay filing its annual report. The company cited the need for more time to complete its year-end financial close. Following this news, the price of Maravai stock fell nearly 22%, according to the complaint.

After the filing of the suit, CFO Kevin Herde provided detailed explanations for the financial reporting issues that delayed Maravai’s results during the company’s recent fourth quarter 2024 earnings call. Specifically, Herde admitted that an error in revenue recognition timing tied to a shipment resulted in $3.9 million being improperly recorded in Q2 2024 instead of Q3. Herde acknowledged that this improper accounting stemmed from differing contractual terms for the order—a deviation that was not communicated promptly to the accounting team.

Herde also addressed goodwill accounting concerns, revealing that Maravai required additional time to assess a potential impairment charge related to its Alphazyme acquisition. Ultimately, the company recorded an $11.9 million non-cash goodwill impairment charge after determining that Alphazyme’s carrying value exceeded its estimated fair value. Herde conceded that these issues highlighted material weaknesses in Maravai’s internal controls over revenue recognition and goodwill impairment assessments—one of the claims raised by plaintiffs in the lawsuit.

Hagens Berman’s Investigation:

Shareholder rights firm Hagens Berman is probing the alleged claims.

“Our focus is on whether Maravai concealed the true extent of issues related to revenue recognition and goodwill accounting, and failed to properly disclose these to investors,” said Reed Kathrein, the Hagens Berman Partner leading the firm's probe.

If you invested in Maravai and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the Maravai case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Maravai 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 MRVI@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895