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Enservo Corporation Class Action Lawsuit - ENSV

Company Name
Enservo Corporation
Stock Symbol
ENSV
Class Period
May 13, 2021 to April 18, 2022
Motion Deadline
July 19, 2022
Court
District of Colorado
22 days left to seek lead plaintiff status

Case Summary

The Enservo class action lawsuit seeks to represent purchasers of Enservco Corporation (NSYE American: ENSV) securities between May 13, 2021 and April 18, 2022, inclusive (the “Class Period”).  The Enservco class action lawsuit – captioned Saee v. Enservco Corporation, No. 22-cv-01267 (D. Colo.) – charges Enservco and certain of its top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Enservco class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Enservco class action lawsuit must be filed with the court no later than July 19, 2022.

CASE ALLEGATIONS: Enservco, through its subsidiaries, provides well enhancement and fluid management services to the onshore oil and natural gas industry in the United States.  Recently, Enservco employed several tactics in an apparent effort to strengthen its balance sheets.  For example, in August 2020, Enservco’s Board of Directors approved a transaction to, among other things, exchange 50% of Enservco’s subordinated debt with Cross River Partners, L.P., a related party.  On February 3, 2021, Enservco exchanged the remaining 50% of its subordinated debt with Cross River Partners.  In addition, Enservco awarded a warrant to Cross River Partners to purchase up to 150,418 additional shares of Enservco common stock in the future at an exercise price of $2.507 per share.  Moreover, during the second quarter of 2021, Enservco amended payroll tax returns originally filed for the third and fourth quarters of 2020 to claim refundable Employee Retention Credits (“ERCs”) for those periods.

But as the Enservco class action lawsuit alleges, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Enservco had defective disclosure controls and procedures and internal control over financial reporting; (ii) as a result, there were errors in Enservco’s financial statements relating to, among other things, its transactions with Cross River Partners and accounting for ERCs; (iii) accordingly, Enservco would need to restate certain of its financial statements and delay the filing of its 2021 annual report with the U.S. Securities and Exchange Commission; (iv) Enservco downplayed the true scope and severity of its financial reporting issues; (v) accordingly, Enservco could not file its delayed 2021 annual report with the SEC within its initially represented timeline; and (vi) as a result, Enservco’s public statements were materially false and misleading at all relevant times.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Enservco securities during the Class Period to seek appointment as lead plaintiff.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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