INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Enviva Inc. (NYSE: EVA) Shareholders
NEWTOWN, PA, December 12, 2022– The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Enviva Inc. (“Enviva” or the “Company”) (NYSE: EVA) common stock between February 21, 2019, and October 11, 2022, inclusive (the “Class Period”).
Investors who purchased Enviva common stock during the Class Period may move the U.S. District Court for the District of Maryland to appoint them as lead plaintiff, no later than January 3, 2023. Enviva shareholders who wish to pursue corporate governance reforms should contact Edelson Lechtzin LLP, toll-free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Enviva
Headquartered in Bethesda, Maryland, Enviva is the world’s largest producer of wood pellets, a renewable alternative to coal. Formerly known as Enviva Partners, LP, Enviva develops, constructs, acquires, owns and operates fully contracted wood pellet production plants.
The Securities Fraud Class Action
The Complaint alleges that, throughout the Class Period, defendants made false and/or misleading statements and or failed to disclose that: (i) contrary to Enviva’s claims, the Company procures wood from clearcutting operations; (ii) Enviva drives demand for deforestation; (iii) contrary to Enviva’s claims, hardwood forest inventory is decreasing around its facilities; (iv) an exodus of Enviva’s sustainability leadership in 2021 was a red flag for environmental, social, and governance (ESG) investing; (v) Enviva inflated profit margins by providing equipment to loggers in exchange for reduced prices; and (vi) Enviva overpaid for related-party acquisitions. As a result, Enviva misrepresented the environmental sustainability of its wood pellet production and procurement; it overstated the true measure of cash flow generated by the Company’s platform; and it misrepresented its business model and ability to achieve the level of growth that it had represented to investors.
On October 12, 2022, during pre-market hours, Blue Orca Capital, an activist hedge fund, published a report calling into question Enviva’s sustainability claims and financial health. On this news, the price of Enviva shares plummeted $7.74 per share, or 13.13%, to close at $51.23 per share on October 12, 2022.
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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.