Description: Securities class action lawsuit alleging that a company that develops, constructs, acquires, and owns and operates wood pellet production plants misrepresented the environmental sustainability of its business.
Fagen v. Enviva Inc.
Filing Date Type File Action Taken Summary 11/03/2022 Complaint Download Complaint filed. Securities Class Action Filed Against Developer and Operator of Wood Pellet Production Plants. A federal securities class action lawsuit filed in federal district court in Maryland alleged that a company that develops, constructs, acquires, and owns and operates wood pellet production plants misrepresented the environmental sustainability of its wood pellet production and procurement. The complaint also alleged that the company overstated “the true measure of cash flow” its business generated, that the company therefore misrepresented its business model and its ability to achieve the level of growth it represented it could obtain, and that the company’s public statements were materially false and misleading at all relevant times. The complaint cited a report published in October 2022 that stated that the company was “flagrantly greenwashing its wood procurement” and calling the business “a product of deranged European climate subsidies which incentivize the destruction of American forests so that European power companies can check a bureaucratic box.” The complaint also cited allegedly materially false and misleading statements made beginning in February 2019. The defendants were the company, its chair and chief executive officer, and its executive vice president and chief financial officer.