- Dhatt v. Enviva Inc., et al.
- Class Period:11/03/2022 - 05/03/2023
- Date Filed:09/12/2023
- Jurisdiction:District Court of Maryland
- Docket Number: 8:23-cv-02474
- Lead Plaintiff Deadline: November 13, 2023
Seek Plaintiff 0
A class action lawsuit, captioned Dhatt v. Enviva Inc., et al., has been filed against Enviva Inc. (“Enviva” or the “Company”) (NYSE: EVA) and certain of the Company’s top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Enviva common stock on a U.S. open market during the class period November 3, 2022, through May 3, 2023, both dates inclusive (the “Class Period”).
Enviva is a Maryland-based company that develops, constructs, acquires, and operates fully contracted wood pellet production plants. These plants take wood fiber and aggregate and process it into dry, densified, uniform pellets that can be effectively stored and transported around the world. The Company, describing itself as a “growth-oriented company,” purports to use its wood pellets to displace coal and other fossil fuels to generate power and heat as part of its efforts to accelerate the energy transition away from conventional energy sources.
The complaint alleges that throughout the Class Period, Defendants misrepresented to investors facts concerning Enviva’s operational improvements and the stability of its dividend. The truth was revealed on May 3, 2023, when, after the market closed, Enviva issued a press release announcing results for the first quarter of 2023 that came in below Enviva’s revenue and EPS expectations.
The complaint alleges that in speaking the truth, Enviva acknowledged that “specific,” previously undisclosed “issues” impacting Enviva’s plans to improve productivity and reduce costs caused Enviva’s operating results to fall behind expectations.
As a result, Enviva eliminated its $0.905 per share quarterly dividend to preserve liquidity and dramatically lowered its 2023 net loss and adjusted EBITDA guidance. In response to this news, on May 4, 2023, the price of Enviva’s common stock fell $14.34 per share to $7.01, or a 67.2% drop on exceptionally heavy volume of 15.6 million shares, more than 28 times the average daily trading volume of Enviva’s common stock.
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If you purchased or otherwise acquired Enviva common stock on a U.S. open market during the class period November 3, 2022 through May 3, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at firstname.lastname@example.org.
The deadline to apply to the Court to serve as a lead plaintiff in the Enviva lawsuit is November 13, 2023.