Gauzy Faces Nasdaq Deficiency Notice Over Board Independence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GAUZ?
Source: seekingalpha
- Deficiency Notice: Gauzy received a Nasdaq deficiency notice for failing to meet board, audit committee, and compensation committee independence requirements following the resignation of two directors, indicating vulnerabilities in its governance structure that could impact investor confidence.
- Compliance Deadline: The company has 45 days, until March 20, 2026, to regain compliance or submit a compliance plan, and if Nasdaq accepts the plan, Gauzy may receive up to a 180-day extension to restore compliance, providing a crucial window for governance improvement.
- Director Recruitment Challenges: Gauzy is actively seeking qualified independent directors but cannot guarantee timely compliance, highlighting challenges in its governance structure that may affect its future financing capabilities and market performance.
- Stock Price Reaction: Gauzy shares fell 3.6% in premarket trading, reflecting market concerns over the company's governance issues, which could lead to diminished investor confidence in its future performance.
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Analyst Views on GAUZ
Wall Street analysts forecast GAUZ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GAUZ is 2.38 USD with a low forecast of 2.25 USD and a high forecast of 2.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 0.883
Low
2.25
Averages
2.38
High
2.50
Current: 0.883
Low
2.25
Averages
2.38
High
2.50
About GAUZ
Gauzy Ltd is an Israel-based company that is primarily engaged in material science and nanotechnology. The Company is focused on development and production of LCG (Light Control Glass) in Polymer Dispersed Liquid Crystal (PDLC) or Suspended Particle Device (SPD) technology. The technology of the Company enables windows to dim and tint without losing the view through exterior windows. The Company manufactures its products for four sectors: Architecture, Automotive, Aeronautics, and Safety Tech. In the Architecture sector, the Company uses its glass technologies to build spaces. In the Automotive sector, the Company delivers glass technologies to passenger vehicles, agricultural & construction vehicles, railway, and marine. In the Aeronautics sector, the Company produces cabin and cockpit shading systems for commercial and business aircraft. In the Safety Tech sector, the Company designs Driver Protection Systems. The Firm operates in Israel as well as worldwide through its subsidiaries.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Legal Investigation Launched: Faruq & Faruq LLP is investigating potential claims against Gauzy Ltd., urging investors to seek lead plaintiff status in a federal securities class action by February 6, 2026, highlighting serious concerns about the company's financial health.
- Financial Crisis Exposed: The complaint alleges that three of Gauzy's French subsidiaries lack the financial means to meet their debts, leading to potential insolvency proceedings, which not only tarnishes the company's reputation but also raises the risk of default on existing senior secured debt.
- Stock Price Plummets: Following the announcement on November 14, 2025, that Gauzy's French subsidiaries entered insolvency proceedings, the stock price fell nearly 50% over two days, from $4.02 to $2.02 per share, reflecting extreme market pessimism regarding the company's future.
- Disclosure Failures: Gauzy's failure to timely release its third-quarter 2025 financial results indicates serious issues with transparency and compliance, which could further erode investor confidence and impact future financing capabilities.
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- Deficiency Notice: Gauzy received a Nasdaq deficiency notice for failing to meet board, audit committee, and compensation committee independence requirements following the resignation of two directors, indicating vulnerabilities in its governance structure that could impact investor confidence.
- Compliance Deadline: The company has 45 days, until March 20, 2026, to regain compliance or submit a compliance plan, and if Nasdaq accepts the plan, Gauzy may receive up to a 180-day extension to restore compliance, providing a crucial window for governance improvement.
- Director Recruitment Challenges: Gauzy is actively seeking qualified independent directors but cannot guarantee timely compliance, highlighting challenges in its governance structure that may affect its future financing capabilities and market performance.
- Stock Price Reaction: Gauzy shares fell 3.6% in premarket trading, reflecting market concerns over the company's governance issues, which could lead to diminished investor confidence in its future performance.
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- Class Action Notice: Rosen Law Firm reminds investors who purchased Gauzy Ltd. (NASDAQ: GAUZ) securities between March 11, 2025, and November 13, 2025, to apply as lead plaintiffs by February 6, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Gauzy made false and misleading statements during the class period, particularly regarding its French subsidiaries' inability to meet debts, which could lead to insolvency proceedings and jeopardize the company's financial stability.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has achieved the largest securities class action settlement against a Chinese company, being ranked No. 1 by ISS Securities Class Action Services in 2017, showcasing its expertise and success in this field.
- Investor Guidance: Investors are advised to carefully select qualified counsel with a proven track record, avoiding firms that merely act as intermediaries, to ensure effective legal representation in the class action.
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- Bankruptcy Proceedings Initiated: On November 14, 2025, Gauzy announced that the Commercial Court of Lyon, France, has commenced bankruptcy proceedings for three of its subsidiaries, aimed at preserving business operations and repaying creditors, indicating a severe financial crisis for the company.
- Debt Default Risk: The initiation of these proceedings poses a risk of default under Gauzy's existing senior secured debt facilities, which, if unresolved, could lead to more severe financial consequences, heightening investor concerns about the company's viability.
- Stock Price Plunge: Following the bankruptcy announcement, Gauzy's stock price fell by $2.00, or 49.8%, over two trading days, closing at $2.02 per share, reflecting extreme pessimism in the market regarding the company's future prospects.
- Class Action Notice: Investors are reminded to file a lead plaintiff motion by February 6, 2026, alleging that the company made materially false statements regarding its financial condition, potentially exposing investors to greater losses.
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- Class Action Reminder: The Schall Law Firm reminds investors of a class action lawsuit against Gauzy Ltd. (NASDAQ:GAUZ) for violations of §§10(b) and 20(a) of the Securities Exchange Act during the period from March 11, 2025, to November 13, 2025.
- False Statements Allegation: The complaint alleges that Gauzy made false and misleading public statements, as multiple subsidiaries in France failed to repay debts on time, leading to potential default risks for the company’s senior secured debt facilities.
- Investor Losses: As the market learned the truth about Gauzy's financial situation, investors suffered damages, indicating that the company's public statements throughout the class period were materially misleading and affected investor decisions.
- Legal Consultation Opportunity: The Schall Law Firm encourages affected investors to contact them before February 6, 2026, to participate in the lawsuit and discuss their rights, offering free legal consultations.
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- Legal Investigation Initiated: Faruq & Faruq LLP is investigating potential claims against Gauzy Ltd., particularly encouraging investors who purchased securities between March 11, 2025, and November 13, 2025, to contact them before the February 6, 2026, deadline to seek lead plaintiff status.
- Financial Crisis Disclosure: Gauzy's three French subsidiaries are alleged to lack the financial means to meet their debts, leading to potential insolvency proceedings, a revelation that shocked the market on November 14, 2025, directly impacting the company's reputation and investor confidence.
- Stock Price Plunge: Following the announcement of insolvency proceedings, Gauzy's stock price plummeted nearly 50% over two trading days, from $4.02 to $2.02, reflecting extreme market concern over the company's financial health and potentially prompting more investors to seek legal recourse.
- Investor Rights Protection: Faruq & Faruq LLP encourages anyone with information, including former employees and shareholders, to come forward to support the investigation into Gauzy, demonstrating the firm's commitment to protecting investors' rights and pursuing possible compensation.
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