INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Enovix Corporation (NASDAQ: ENVX) Shareholders
NEWTOWN, PA, January 17, 2023 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of purchasers and holders of Enovix Corporation. (“Enovix”) (NASDAQ: ENVX) common stock.
Investors who purchased Enovix Corporation common stock between February 22, 2021, and January 13, 2023 (the “Class Period”) may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff no later than March 7, 2023. Current holders of Enovix stock may pursue corporate governance reforms. Investors who wish to discuss their losses on Enovix stock should contact Edelson Lechtzin LLP, toll free at 1-844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Enovix Corporation
Headquartered in California, Enovix designs, develops, and manufactures silicon-anode lithium-ion batteries. The company uses 3D cell architecture that it claims allows its batteries to achieve higher energy density.
The Securities Fraud Claims
On February 22, 2021, Enovix announced plans to become a publicly traded company, setting a goal to develop its own manufacturing line and to begin delivering products to customers by the second quarter of 2022.
On July 15, 2021, Enovix became a publicly traded company by merging with a special purpose acquisition company (“SPAC”), in order to sidestep the regulatory scrutiny of the traditional IPO process. Enovix was acquired by RSVAC, the company changed its name to Enovix Corporation, and RSVAC’s publicly traded shares became Enovix shares.
The Complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements, and failed to disclose material adverse facts, about Enovix’s business and operations. Defendants overstated the company’s ability to produce its battery technology at a large enough scale to transition for being focused on R&D to a company capable of high volume production and commercialization.
On November 1, 2022, the company announced its third quarter 2022 financial results, which revealed issues affecting its manufacturing operations, and announced they needed to shift their focus to future manufacturing lines. On this news, the price of Enovix stock fell from a close of $18.87 per share on October 31, 2022, to $10.53 per share by the close of trading on November 2, 2022, a 44% decline.
On January 3, 2023, it was revealed that the Company’s second production facility and production lines would be delayed due to equipment failures. On this news, Enovix’s share price dropped 41% from a close of $12.12 per to a close of $7.15 on January 4, 2023.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected]
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.