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EVA.US
id: 409

Enviva, Inc. (EVA) Missed Guidance Case

D. Maryland
Court
8:23-cv-02474
Case number
03 Nov 2022
Class period Start
03 May 2023
Class period End
11 Nov 2023
Lead Plaintiff motion deadline
  • In May 2023, Enviva dramatically lowered its 2023 guidance downward and suspended dividend payments going forward.
  • $EVA fell 67.2%, seriously damaging shareholders.
  • Investors suspect Enviva and its seniors of misguiding about the Company's financial condition.

On May 3, 2023, Enviva, Inc. (EVA) dramatically lowered its 2023 guidance downward and suspended dividend payments going forward.


The Company now projected that Enviva’s 2023 EBITDA would be in the range of $200-250 million, net loss would be substantially higher, increasing to a range of $136-$186 million, and Enviva’s $0.905 per share quarterly dividend was eliminated.

On this news, $EVA fell 67.2%, seriously damaging shareholders.

Between November 3, 2022, and April 3, 2023, Enviva and its senior officers touted the Company's ability to achieve a yearly dividend payout of $3.62 per share, represented that the liquidity of the Company was "strong," and reiterated that the Company's adjusted EBITDA for 2023 was in the range of $305 million to $335 million.

Earlier, on October 12, 2022, $EVA lost over $0.5 billion of its capitalization after short-seller Blue Orca Capital's report alleging the Company failed to meet its sustainability promises, "troubling cash flows, dangerous leverage, and unsustainable dividend.”


Taking all representations into account, investors have reason to suspect Enviva and its seniors of misguiding about the financial condition of the Company including its EBITDA and net loss forecasts, liquidity position, capital allocations, operation costs, productivity, and the impact of these metrics on the Company’s ability to continue paying dividends in 2023.


Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
04 May 2023
Filing date
12 September 2023
Lead Plaintiff Deadline
11 November 2023
Judge
Hon. Deborah L. Boardman
Collecting participants…

Enviva Partners LP

Enviva Inc. produces, processes, and sells utility-grade wood pellets. The company's products are used as a substitute for coal in power generation, and combined heat and power plants. It serves po...

    Ticker
    EVA.US
    ISIN
    US29414J1079
    CIK
    1592057
    Sector
    Basic Materials
    Industry
    Lumber & Wood Production
    Country
    USA
    Address
    7272 Wisconsin Avenue, Bethesda, MD, United States, 20814