|Company Name||Enservco Corporation|
|Class Period||May 13, 2021 to April 18, 2022|
|Lead Plaintiff Motion Deadline||July 19, 2022|
On March 28, 2022, Enservco disclosed that it had “concluded that the Company’s previously issued condensed consolidated financial statements as of and for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 should no longer be relied upon largely because of the Company’s accounting for a conversion of debt to equity with a related party.”
On this news, Enservco’s stock fell $0.45, or 12.3%, to close at $3.21 per share on March 28, 2022, thereby injuring investors.
Then, on March 31, 2022, the Company disclosed that it could not timely file its 2021 annual financial report because it was “in the process of restating [its] financial statements.”
On this news. Enservco’s stock fell $0.21, or 7.8%, to close at $2.49 per share on April 1, 2022, thereby injuring investors further.
Then, on April 4, 2022, Enservco announced that its Chief Financial Officer would be departing and would no longer be an executive officer or employee.
On this news, Enservco’s stock fell $0.19, or 7.5%, to close at $2.35 per share on April 5, 2022.
Then, on April 18, 2022, the Company disclosed that it would not “be filing its Form 10-K for the fiscal year ended December 31, 2021 within the 15 day extension period provided by the Company’s 12b-25 filing” because it “intends to [again] amend its Quarterly Reports on Form 10-Q for the Relevant Periods to reflect restatements of its condensed consolidated financial statements for the Relevant Periods.”
On this news, Enservco’s stock fell $0.38, or 10.5%, to close at $3.25 per share on April 19, 2022, thereby injuring investors further.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Enservco had defective disclosure controls and procedures and internal control over financial reporting; (2) as a result, there were errors in Enservco’s financial statements relating to, inter alia, its transactions with Cross River Partners and accounting for ERCs; (3) accordingly, the Company would need to restate certain of its financial statements and delay the filing of its 2021 annual report with the SEC; (4) the Company downplayed the true scope and severity of its financial reporting issues; (5) accordingly, the Company could not file its delayed 2021 annual report with the SEC within its initially represented timeline; and (6) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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