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VTNR.US
id: 597

Vertex Energy, Inc. (VTNR) Misconduct Case

S.D. Alabama
Court
01 Apr 2022
Class period Start
08 Aug 2022
Class period End
12 Jun 2023
Lead Plaintiff motion deadline
  • Vertex Energy (VTNR) disclosed EBITDA for the Mobile refinery of$63.6 million, compared to the guidance of $120-$130 million.
  • Vertex Energy (VTNR) stock fell by ~50%, damaging investors.
  • Investors suspect Vertex Energy (VTNR) & its Leaders of misleading statements.
On August 9, 2022, Vertex Energy (VTNR) disclosed a net loss of $63.8 million during Q2 2022 and revealed that adjusted EBITDA for the Mobile refinery was only $63.6 million, compared to the guidance given just three months prior for EBITDA of $120-$130 million, a total shortfall of 50%. The Company also withdrew its financial guidance for the remainder of the fiscal year 2022 and fiscal year 2023.

On this news, Vertex Energy stock fell by about 44%, damaging investors. The stock price continued to fall in subsequent days as the market digested the news, reaching a low 50% below the closing price on August 8, 2022.

In early 2021, Vertex Energy announced that it had reached an agreement to acquire an oil refinery located in Mobile, Alabama and a key component of the acquisition was Vertex Energy’s plan to convert a portion of the refinery’s 91,000 barrel-per-day output to renewable diesel fuel, which was expected to generate higher profits than the refinery’s conventional gasoline and diesel fuel outputs.

But taking all appeared facts into account, now Investors have reasons to suspect that, immediately prior to the closing of the Mobile acquisition, the Company had entered into, or was a party to, a series of transactions that dramatically capped the new plant’s profitability and would, in fact, led to significant losses immediately following the acquisition. These transactions, which in some instances were required pursuant to the financing arrangements Vertex Energy had entered into, resulted in over $125 million in losses.

Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08 August 2022
Lead Plaintiff Deadline
12 June 2023
Collecting participants…

Vertex Energy Inc

Vertex Energy, Inc., an energy transition company that focuses on the production and distribution of conventional and alternative fuels. It engages in refining and distributing petroleum products c...

    Ticker
    VTNR.US
    ISIN
    US92534K1079
    CIK
    890447
    Sector
    Energy
    Industry
    Oil & Gas Refining & Marketing
    Country
    USA
    Address
    1331 Gemini Street, Houston, TX, United States, 77058