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VTNR.US
id: 597
Vertex Energy, Inc. (VTNR) Misconduct Case
The settlement funds have been distributed to claimants.
$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 deadlineVertex 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.
Case Type
US Securities Class Action
Case Status
Disbursed
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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