The Class: Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Eviva, Inc. (NASDAQ: EVA) securities between February 21, 2019 and October 11, 2022, for violations of the Securities Exchange Act of 1934. Enviva, formerly known as Enviva Partners, LP, develops, constructs, acquires, and owns and operates, fully contracted wood pellet production plants.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Enviva. Shareholders who want to be appointed lead plaintiff for the class must file their papers by January 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Enviva, Inc. (EVA) Misled Investors Regarding its Business Prospects
According to the complaint, Enviva'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.”
However, during the class period, defendants failed to disclose that: (i) Enviva had misrepresented the environmental sustainability of its wood pellet production and procurement; (ii) Enviva had similarly overstated the true measure of cash flow generated by the Company’s platform; and (iii) accordingly, Enviva had misrepresented its business model and the Company’s ability to achieve the level of growth that defendants had represented to investors.
On October 12, 2022, Blue Orca Capital published a report on Enviva claiming that “new discovered data suggests . . . the company is flagrantly greenwashing its wood procurement” and characterized Enviva’s claim to be a “pure play ESG Company with a healthy, self-funded dividend and cash flows to provide a platform for future growth” as “nonsense on all counts.” Moreover, the Blue Orca Report alleged that “Enviva is a dangerously levered serial capital raiser whose deteriorating cash conversion and unprofitability will drain it of cash next year” and is “a product of deranged European climate subsidies which incentivize the destruction of American forests so that European power companies can check a bureaucratic box.”
On this news, Enviva’s stock price fell $7.74 per share, or 13.13%, to close at $51.23 per share on October 12, 2022.
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