SAN FRANCISCO, CA / ACCESSWIRE / November 25, 2022 / Hagens Berman urges Enviva Inc. (NYSE:EVA) investors who suffered significant losses to submit your losses now.
Class Period: Feb. 21, 2019 - Oct. 11, 2022
Lead Plaintiff Deadline: Jan. 3, 2023
Contact An Attorney Now: [email protected]
Enviva Inc. (NYSE:EVA) Securities Fraud Class Action:
The litigation challenges Enviva's statements regarding its wood procurement processes and business model.
Specifically, Enviva has attracted ESG investors by claiming that it does not engage in clear-cutting forests to produce its wood pellets - the controversial practice of removing full swaths of forest which is widely condemned by climate change advocates and shunned by the ESG investor community. In addition, Enviva claims that its harvesting forests for wood pellets is sustainable and produces lower greenhouse gas emissions than coal because it is only harvesting waste left by the timber industry, scraps that otherwise would be left to rot on the forest floor.
According to the complaint, these statements were false and misleading in that they failed to disclose that: (1) Enviva was engaging in clear-cutting of forests; and (2) Enviva had overstated the true measure of cash flow generated by its platform.
The truth emerged on Oct. 12, 2022, when activist investment firm Blue Orca released a scathing report accusing the company of "engaging in textbook greenwashing." Blue Orca claims that after geolocating Enviva's harvests, satellite imagery reveals hundreds of images of clear-cut forests, suggesting that the practice is widespread and that Enviva is misleading investors.
Blue Orca further contends that contrary to the company's public statements of purchasing on average less than 30% of the wood from each harvest, Enviva's track and trace data and interviews with former employees demonstrate that the company takes upwards of 70% of the volume.
In addition, Blue Orca concludes, 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 European power companies can check a bureaucratic box."
This news sent the price of Enviva shares crashing 13% lower on Oct. 12, 2022, wiping out over $500 million of shareholder value.
"We're focused on investors' losses and proving Enviva has engaged in greenwashing," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Enviva and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Enviva should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP