EVA Shares Plunged: Here's What Happened

The Situation

Enviva Inc (NYSE: EVA) shares – the world's largest producer of wood pellets – plunged on Tuesday after investors were reminded that a class action lawsuit was filed and that they should contact a stockholder rights law firm. As of 11:30 AM ET, Eviva Inc shares dropped by 8.74%.

The Explanation

Enviva Inc officially went public in 2015 and is still up 125.14% overall. However, year-over-year, the company dropped by 34.64%.

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminded Enviva investors that a class action lawsuit was filed against the company and that investors have until January 3 to apply as lead plaintiffs in the lawsuit.

The allegations are that the defendants made false and misleading statements regarding Enviva's business, operations, and compliance policies.

See the $ENV chart performance here.

The Effect

Enviva Inc stocks dropped as investors were reminded that they could contact the nationally recognized stockholder rights law firm regarding the class lawsuit. The investors' reactions happened as the company was under fire for allegedly false and misleading statements.

Since investors can't know for sure whether the company will win the class action lawsuit, it is more important to focus on Enviva's business.

See full $ENV flow at: https://unusualwhales.com/stock/ENV/flow-overview