Kirby McInerney LLP | Financial Litigation Law Firm | <h3 >Enviva Inc.</h3 >
This links to the home page
Cases
PRACTICE AREAS

Enviva Inc.


The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Maryland on behalf of those who acquired Enviva Inc. (“Enviva” or the “Company”) (NYSE: EVA) securities between February 21, 2019 through October 11, 2022 (the “Class Period”). Investors have until January 3, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
 
Enviva manufactures processed biomass fuel. The Company offers wood chips and wood pellets to power generation and industrial customers.
 
On October 12, 2022, during pre-market hours, Blue Orca Capital (“Blue Orca”) published a report on Enviva (the “Blue Orca Report”). Among other allegations, the Blue Orca Report stated 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, the price of Enviva shares declined by $7.74 per share, or approximately 13.13%, from $58.97 per share to close at $51.23 on October 12, 2022.
 
The lawsuit alleges that, throughout the Class Period, Defendants misled investors and/or 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.
 

Enviva Inc. Investor Contact Form