San Diego, CA -- (SBWire) -- 10/27/2022 --Enviva Inc. is under investigation over potential securities laws violations in connection with certain financial statements.
Investors who purchased shares of Enviva Inc. (NYSE: EVA), have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on whether a series of statements by Enviva Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Bethesda, MD based Enviva Inc. produces and sells utility-grade wood pellets. Enviva Inc. reported that its annual Total Revenue rose from $875.07 million in 2020 to over $1.04 billion in 2021, and that its Net Income of $13.62 million in 2020 turned into a Net Loss of $122.06 million in 2021.
On October 12, 2022, before markets opened, market researcher Blue Orca Capital published a report alleging issues with Enviva Inc.. In relevant part, the Blue Orca report alleged that, contrary to Enviva Inc.'s public representations, Enviva Inc. was purchasing wood from clear-cut forests. This, according to the report, would disincentivize large numbers of Enviva customers from purchasing wood pellets from Enviva. Wood pellets produced from clear-cut forests would not qualify for an important 'renewable energy' classification.
Furthermore, the Blue Orca report alleged that Enviva was engaging in an equipment-lease scheme to inflate its EBITDA, wherein Enviva would purchase and capitalize equipment, then lease the equipment to loggers who would sell wood pellets to Enviva for a reduced price. This allowed Enviva to lower the cost of materials, allowing Enviva to report artificially boosted EBITDA numbers.
Shares of Enviva Inc. (NYSE: EVA) declined from $66.97 per share on September 28, 2022, to as low as $45.88 per share on October 13, 2022.
Those who purchased shares of Enviva Inc. (NYSE: EVA) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Christopher Clausen
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NYSE:EVA Investor Notice: Investigation over Possible Securities Laws Violations B Enviva Inc.
An investigation for investors in Enviva Inc. (NYSE:EVA) shares over potential securities laws violations by Enviva Inc. was announced.