On May 3, 2023, Enviva Inc. (NYSE: EVA), a producer of wood pellets, issued a press release in which it lowered its 2023 projected EBITDA from a range of $305-$335 million to $200-$250 million, increased its projected net loss from a range of $18-$48 million to $136-$186 million, and eliminated its quarterly dividend. These revelations occurred only one month after an Investor Day presentation during which the company had reiterated its 2023 guidance and highlighted its “stable and secure dividend.” On this news, Enviva’s stock price fell $14.34 per share, or 67%, to close at $7.01 per share on May 4, 2023.
A securities class action to recover investor losses has been filed on behalf of purchasers of Enviva shares from November 3, 2022 through May 3, 2023 (the “class period”). The lawsuit asserts that defendants – the company and four of its officers – made materially false and/or misleading statements and failed to disclose materially adverse facts about the company and its prospects. Specifically, the lawsuit alleges that defendants failed to disclose the true financial condition of the company, including its EBITDA and net loss forecasts, liquidity position, operating costs, productivity and the company’s ability to continue to pay dividends.
If you purchased or otherwise acquired Enviva shares during the class period and have sustained losses on your investment, we encourage you to discuss your rights, including potentially seeking to lead or participate in the class action lawsuit, by contacting Mark R. Stein or Linda Border at Barrack, Rodos & Bacine, at the toll-free number 877-386-3304, or via email at investoralert@barrack.com.
The deadline for seeking to serve as a lead plaintiff in this case is November 13, 2023.
Barrack Rodos & Bacine is a nationally recognized shareholder and consumer rights law firm with offices in Pennsylvania, New York, and California. It has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm’s largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.