VTNR.US
id: 597
Vertex Energy, Inc. (VTNR) Misconduct Case
Late claims are being considered for compensation, subject to approval.
$6,300,000
Cash SettlementS.D. Texas
Court4:23-cv-2145
Case number04/01/2022
Class period Start08/08/2022
Class period End06/20/2025
Claim deadline- Vertex Energy (VTNR) disclosed EBITDA for the Mobile refinery of$63.6 million, compared to the guidance of $120-$130 million.
- Vertex Energy (VTNR) stock fell by ~50%, damaging investors.
- Investors suspect Vertex Energy (VTNR) & its Leaders of misleading statements.
On August 9, 2022, Vertex Energy (VTNR) disclosed a net loss of $63.8 million during Q2 2022 and revealed that adjusted EBITDA for the Mobile refinery was only $63.6 million, compared to the guidance given just three months prior for EBITDA of $120-$130 million, a total shortfall of 50%. The Company also withdrew its financial guidance for the remainder of the fiscal year 2022 and fiscal year 2023.
On this news, Vertex Energy stock fell by about 44%, damaging investors. The stock price continued to fall in subsequent days as the market digested the news, reaching a low 50% below the closing price on August 8, 2022.
In early 2021, Vertex Energy announced that it had reached an agreement to acquire an oil refinery located in Mobile, Alabama and a key component of the acquisition was Vertex Energy’s plan to convert a portion of the refinery’s 91,000 barrel-per-day output to renewable diesel fuel, which was expected to generate higher profits than the refinery’s conventional gasoline and diesel fuel outputs.
But taking all appeared facts into account, now Investors have reasons to suspect that, immediately prior to the closing of the Mobile acquisition, the Company had entered into, or was a party to, a series of transactions that dramatically capped the new plant’s profitability and would, in fact, led to significant losses immediately following the acquisition. These transactions, which in some instances were required pursuant to the financing arrangements Vertex Energy had entered into, resulted in over $125 million in losses.
Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Fraud,
Failure to Disclose,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Investment Bank,
Service Provider
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.18
Lead Plaintiff Deadline
06/12/2023
Attorneys
Hagens Berman
Judge
Lee Hyman Rosenthal
Administrator
Strategic Claims Services
Settlement agreement date
2025-04-18
Court hearing date
07/30/2025
Exclusion deadline
07/11/2025
Objection deadline
07/09/2025
Attorney fee
$2,215,000
Trades matching type
FIFO
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