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Newsfile 26-May-2023 1:18 PM
San Francisco, California--(Newsfile Corp. - May 26, 2023) - Hagens Berman urges Vertex Energy, Inc. (NASDAQ:VTNR) investors who suffered substantial losses submit your losses now.
Class Period: Apr. 1, 2022- Aug. 8, 2022
Lead Plaintiff Deadline: June 12, 2023
Contact An Attorney Now: VTNR@hbsslaw.com
Vertex Energy, Inc. (VTNR) Securities Fraud Class Action:
The litigation focuses on Vertex's statements concerning its agreement to acquire an oil refinery in Mobile, Alabama from Shell Oil.
More specifically, Defendants repeatedly assured investors that the Mobile refinery acquisition was a "transformative moment in the history of Vertex" that would enable the company to significantly increase its profitability.
According to the complaint, Defendants failed to disclose that prior to the Mobile refinery acquisition they: (1) entered into hedging transactions that significantly capped profit margins on 50% of the refinery's expected output from Apr. 1 - Sept. 30, 2022; (2) entered into an inventory intermediation agreement with investment bank Macquarie Group that would and did result in Vertex incurring significant fees and inventory losses; and (3) entered into an inventory purchase agreement with Shell that would and did result in Vertex paying above-market prices for a significant portion of $164 million of crude oil inventory.
Investors learned the truth on Aug. 9, 2022, when Vertex announced massive losses incurred by the Mobile refinery during Q2 2022, a surprise Q2 2022 net loss for the company of $63.8 million, and adjusted EBITDA for the Mobile refinery that was 50% below guidance given just 3 months earlier. In addition, Vertex withdrew its guidance for the remainder of FY 2022 and for FY 2023.
These revelations drove the price of Vertex shares sharply lower.
"We're focused on investors' losses and proving Vertex lied about the true economics of the Mobile refinery purchase," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Vertex and have substantial 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 Vertex 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 VTNR@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/167693