The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Enovix Corp. (“Enovix”) (NASDAQ: ENVX) securities between February 22, 2021 through January 3, 2023 (the “Class Period”). Investors have until March 7, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Enovix focuses on the development and production of advanced silicon-anode lithium-ion batteries.
On November 1, 2022, Enovix released its Letter to Our Shareholders for Q3 2022, which reported that Enovix’s revenues for the third quarter were just eight thousand dollars ($8,000), compared with a GAAP loss of $82.0 million. The letter also disclosed that the “improvements” Enovix had partially shut down Fab-1, its first manufacturing facility, to implement had not been successful, and that the Company was now pivoting towards prioritizing its next generation manufacturing lines. A November 2, 2022 post to Motley Fool entitled “Why Enovix Stock Plunged Today,” explained that investors “weren’t expecting an announcement the company will put more effort into Gen2 technology over improving Gen1 technology. This likely means that revenue scaling will take longer than expected.” On this news, the price of Enovix shares declined by $7.46, or approximately 41.47%, from $17.99 to close at $10.53 on November 2, 2022.
On January 3, 2023, Defendant Thurman J. Rodgers, Executive Chairman of Enovix, hosted a “special presentation to shareholders” via conference call, during which he stated that “[Line 2 was] only a partial line. We only built half the line . . . we didn’t want to commit to the second half of the Line 2, until Line 1 worked.” Because of the problems with Lines 1 and 2, and the consequent failure to build additional production lines, Rodgers confirmed that Fab-1 was “doing less than 10% of what it should be doing.” Rodgers also acknowledged that the buildout of the Gen2 lines would be delayed by several months, to the end of 2023 or beginning of 2024. On this news, the price of Enovix shares declined by $4.97, or approximately 41.01%, from $12.12 to close at $7.15 on January 4, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose material adverse facts about Enovix’s revenues and ability to manufacture its proprietary battery technology, including the fact that Enovix’s manufacturing line was beset by defects and problems that prevented the Company from manufacturing its batteries at scale.