Vertex Energy, Inc. (VTNR) Misconduct Case
Vertex Energy has reached a settlement with $VTNR investors to resolve claims that it misled them about its hedging strategy and financial condition following the Mobile refinery acquisition.
Outline
In 2022, Vertex Energy completed the acquisition of a 91,000-barrel-per-day refinery in Mobile, Alabama, and promoted the deal as transformative. Executives claimed the facility generated strong EBITDA and would pay for itself within one quarter. However, on August 9, 2022, Vertex revealed $93M in hedging-related losses. This news sent $VTNR down 44%, and Vertex faced a lawsuit from investors.
Timeline
May 10, 2022 – Vertex reported strong performance from the Mobile refinery and praised its hedging strategy, but did not disclose millions in losses already incurred.
June 21, 2022 – Vertex reiterated a positive financial outlook without warning about hedging losses.
August 9, 2022 – Vertex disclosed $93M in realized and unrealized hedging losses for Q2 2022 and withdrew financial guidance. $VTNR dropped 44%.
October 11, 2023 – Investors filed a lawsuit, alleging that Vertex misled them by concealing critical risks tied to the refinery acquisition and hedging program.
March 25, 2025 – Vertex agreed to a settlement with investors.
Background
Vertex Energy positioned the Mobile refinery acquisition as a key step into the conventional and renewable fuels market. Executives assured investors they had hedged roughly half of the refinery’s output to lock in stable profits. However, the strategy relied on complex crack spread contracts that became unprofitable as energy prices surged.
By May 2022, Vertex had already incurred millions in hedging losses but continued to present a strong financial outlook.
On August 9, 2022, Vertex revealed $46.1M in realized losses and $46.9M in unrealized losses from its hedging program, and cut its EBITDA forecast in half. After that, $VTNR fell 44%.
On October 11, 2023, investors filed a lawsuit, alleging the company misled them about its hedging strategy and financial risks tied to the Mobile refinery.
What Can Investors Expect Now?
Vertex Energy has reached a settlement with $VTNR investors to resolve claims that it misled them about its hedging strategy and financial condition following the Mobile refinery acquisition.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.