NEW YORK, May 27, 2022 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Enservco Corporation (“Enservco” or the “Company”) (NYSE: ENSV) in the United States District Court for the District of Colorado on behalf of investors who purchased Enservco stock between May 13, 2021 and April 18, 2022, inclusive (the “Class Period”).
The Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or 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, inter alia, its transactions with Cross River Partners and accounting for ERCs; (iii) accordingly, the Company 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 (“SEC”); (iv) the Company downplayed the true scope and severity of its financial reporting issues; (v) accordingly, the Company could not file its delayed 2021 annual report with the SEC within its initially represented timeline; and (vi) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 28, 2022, Enservco disclosed in an SEC filing 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” (collectively, the “Relevant Periods”) “should no longer be relied upon largely because of the Company’s accounting for a conversion of debt to equity with a related party,” namely, Cross River Partners. The Company further advised that it had “misinterpret[ed the] eligibility for certain employee retention tax credits under relevant provisions of the [CARES Act]” and would “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 price fell $0.45 per share, or 12.3%, to close at $3.21 per share on March 28, 2022.
Investors who purchased or otherwise acquired shares of Enservco should contact the Firm prior to the July 19, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
