Enviva Inc.
Lead Plaintiff Deadline 11/13/2023
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 during the period from November 3, 2022 through May 3, 2023 (the “Class Period”). Investors have until November 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On May 3, 2023, Enviva unexpectedly revised down its 2023 guidance from a range of $305-335 million to $200-250 million and entirely eliminated its quarterly dividend payments. The Company stated that the decision to revise its capital allocation framework was implemented in order to preserve liquidity and a conservative leverage profile. Specifically, Enviva’s Chief Executive Officer Thomas Meth stated that the Company’s poor performance for the first quarter was due to operating cost overages and production challenges, such as unplanned repairs and maintenance expenses, professional fees, and customer mix impacting results. On this news, the price of Enviva shares declined by $14.34 per share, or approximately 67.2%, from $21.35 per share to close at $7.01 on May 4, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material information about the financial condition of the Company including its (i) EBITDA and net loss forecasts; (ii) liquidity position; (iii) capital allocations; (iv) operation costs; (v) productivity; and (vi) the impact of these metrics on Enviva’s ability to continue paying dividends in 2023.
On May 3, 2023, Enviva unexpectedly revised down its 2023 guidance from a range of $305-335 million to $200-250 million and entirely eliminated its quarterly dividend payments. The Company stated that the decision to revise its capital allocation framework was implemented in order to preserve liquidity and a conservative leverage profile. Specifically, Enviva’s Chief Executive Officer Thomas Meth stated that the Company’s poor performance for the first quarter was due to operating cost overages and production challenges, such as unplanned repairs and maintenance expenses, professional fees, and customer mix impacting results. On this news, the price of Enviva shares declined by $14.34 per share, or approximately 67.2%, from $21.35 per share to close at $7.01 on May 4, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material information about the financial condition of the Company including its (i) EBITDA and net loss forecasts; (ii) liquidity position; (iii) capital allocations; (iv) operation costs; (v) productivity; and (vi) the impact of these metrics on Enviva’s ability to continue paying dividends in 2023.