NYSE:EVA Investor Alert: Lawsuit Alleges Misleading Statements by Enviva Inc.
A lawsuit was filed on behalf of investors in Enviva Inc. (NYSE:EVA) shares over alleged securities laws violations. Deadline: January 2, 2023. Enviva Inc. (NYSE:EVA investors should contact the Shareholders Foundation.
San Diego, CA -- (SBWire) -- 12/05/2022 --An investor, who purchased NYSE: EVA shares, filed a lawsuit against Enviva Inc over alleged violations of Federal Securities Laws by Enviva Inc. formerly known as Enviva Partners, LP.
Investors who purchased shares of Enviva Inc. (NYSE: EVA) have certain options and for certain investors are short and strict deadlines running. Deadline: January 2, 2023. NYSE: EVA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
Bethesda, MD based Enviva Inc. produces and sells utility-grade wood pellets. The Company's products are used as a substitute for coal in power generation, and combined heat and power plants. Significantly, Enviva touts itself as a "growth-oriented" environmental, social, and governance ("ESG") company with a "platform to generate stable and growing cash flows." Enviva Inc. reported that its annual Total Revenue rose from $875.07 million in 2020 to over $1.04 billion in 2021, and that its Net Income of $13.62 million in 2020 turned into a Net Loss of $122.06 million in 2021.
On October 12, 2022, before markets opened, market researcher Blue Orca Capital published a report alleging issues with Enviva Inc.. In relevant part, the Blue Orca report alleged that, contrary to Enviva Inc.'s public representations, Enviva Inc. was purchasing wood from clear-cut forests. This, according to the report, would disincentivize large numbers of Enviva customers from purchasing wood pellets from Enviva. Wood pellets produced from clear-cut forests would not qualify for an important 'renewable energy' classification.
Furthermore, the Blue Orca report alleged that Enviva was engaging in an equipment-lease scheme to inflate its EBITDA, wherein Enviva would purchase and capitalize equipment, then lease the equipment to loggers who would sell wood pellets to Enviva for a reduced price. This allowed Enviva to lower the cost of materials, allowing Enviva to report artificially boosted EBITDA numbers.
Shares of Enviva Inc. (NYSE: EVA) declined from $66.97 per share on September 28, 2022, to as low as $45.88 per share on October 13, 2022.
The plaintiff claims that between February 21, 2019 and October 11, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that Enviva had misrepresented the environmental sustainability of its wood pellet production and procurement, thatEnviva had similarly overstated the true measure of cash flow generated by the Company's platform, that accordingly, Enviva had misrepresented its business model and the Company's ability to achieve the level of growth that Defendants had represented to investors, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Enviva Inc. (NYSE: EVA) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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