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Newsfile 25-Jan-2023 8:07 PM
Enovix Corporation (ENVX) Securities Fraud Class Action:
The litigation focuses on Enovix's past assurances about the viability of its plan to achieve its first meaningful revenue of $176 million in 2023, that its Fab-1 manufacturing facility could scale, and that it had the ability to deliver its batteries years ahead of the competition.
According to the complaint, at the time Enovix went public, its only manufacturing facility and equipment ("Fab-1" and "Gen1", respectively) were beset by defects and technical problems that prevented the company from manufacturing its batteries at scale, despite then-CEO Harrold Rust's stating that the company was focused on producing for "mass-market applications."
The complaint further alleges that, throughout the Class Period, Defendants overstated Enovix's ability to produce batteries at scale, misleadingly touting the company's "meaningful progress" in scaling up Fab-1, and falsely stating that this progress "positions us to deliver 100% active silicon anode lithium-ion batteries with energy densities years ahead of the competition."
Enovix's assurances began to come into question on Nov. 1, 2022, when the company announced disappointing Q3 revenues of just $8,000. The company also revealed that it was pivoting to and prioritizing its next generation manufacturing lines and expected lower overall Fab-1 output in 2023.
Then, on Jan. 3, 2023 Enovix held a business update call with investors, during which its Executive Chairman acknowledged "people are openly questioning if the product is manufacturable" and revealed, among other things, that Fab-1 was "doing less than 10% of what it should be doing."
Each of these events drove the price of Enovix shares crashing lower.
"We're focused on investors' losses and proving Enovix lied about the real Fab-1 and Gen1 capabilities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Enovix and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Enovix should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ENVX@hbsslaw.com.
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/152490