NEW YORK, April 11, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Volta, Inc. (NYSE: VLTA), Everbridge, Inc. (NASDAQ: EVBG), and Embark Technology, Inc. (NASDAQ: EMBK). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Volta, Inc. (NYSE: VLTA)
Class Period: August 2, 2021 – March 28, 2022
Lead Plaintiff Deadline: May 31, 2022
On August 26, 2021, Volta Industries, Inc. (“Legacy Volta”), a private entity, and Tortoise Acquisition Corp. II, a special purpose acquisition company, completed a business combination pursuant to which the combined entity was named Volta Inc. (the “Business Combination”).
On March 2, 2022, after the market closed, Volta revealed that the financial impact of the restatement of its third quarter 2021 financial results was greater than previously disclosed, expecting to report a net loss of $69.7 million for the quarter. On this news, the Company’s share price fell $0.11, or 2.6%, to close at $4.01 per share on March 3, 2022, on unusually heavy trading volume.
Then, on March 21, 2022, Volta announced that it would reschedule its fourth quarter and full year 2021 financial results. On this news, the Company’s share price fell $0.38, or 8.4% to close at $4.12 per share on March 21, 2022, on unusually heavy trading volume.
Then, on March 28, 2022, Volta announced that its founders, Scott Mercer and Christopher Wendel, had resigned from their positions as CEO and President, respectively, and from the Board of Directors of the Company. On this news, the Company’s share price fell $0.76, or 18%, to close at $3.37 per share on March 28, 2022, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Volta had improperly accounted for restricted stock units issued in connection with the Business Combination; (2) that, as a result, the Company had understated its net loss for third quarter 2021; (3) that there were material weaknesses in the Company’s internal control over financial reporting that resulted in a material error; (4) that, as a result of the foregoing, the Company would restate its financial statements; (5) that, as a result of the foregoing, Legacy Volta’s founders would imminently exit the Company; (6) that, as a result, the Company’s financial results would be adversely impacted; and (7) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
For more information on the Volta class action go to: https://bespc.com/cases/VLTA
Everbridge, Inc. (NASDAQ: EVBG)
Class Period: November 4, 2019 – February 24, 2022
Lead Plaintiff Deadline: June 3, 2022
Everbridge is a software company that provides enterprise software applications to automate and accelerate organizations' operational response to "critical events" in order to keep people safe and organizations running. These critical events include public safety threats, information technology outages, cyber-attacks, product recalls, and supply-chain interruptions.
Shortly before and throughout the Class Period, Everbridge engaged in a buying spree, acquiring nine separate companies. The Action alleges that, throughout the Class Period, Defendants misled investors by: (1) failing to disclose that Everbridge was experiencing integration problems with respect to these acquisitions; (2) using the revenues from these acquisitions to mask increasingly stagnant organic growth; and (3) failing to disclose that the COVID pandemic was having a material impact on the size of the deals that Everbridge was able to obtain, with a negative effect on the Company's revenue growth.
The truth regarding Everbridge's failed growth strategy was partially revealed through a press release issued on December 9, 2021. On that date, the Company disclosed that Defendant David Meredith had unexpectedly resigned as Everbridge's CEO. The Company also provided 2022 revenue growth guidance of between 20-23%, well below the expected baseline of 30%.
On this news, Everbridge's common stock price fell almost by half, a price decline of $52.37 per share, or 45.4 percent, to close at $63.00 per share on December 10, 2021.
Then, on February 24, 2022, the full truth was revealed. On that date, Everbridge announced its financial results for the fourth quarter and full year 2021, as well as its guidance for the first quarter and full year 2022. As to revenue, the Company guided only 20% growth in the first quarter of 2022 and a scant 15-17% growth for the full year, even lower than the disappointing guidance previously issued in December 2021. Further, in the related earnings call that same day, the new interim co-CEO, Vernon Irvin, disclosed for the first time, despite prior representations to the contrary, that "these products and businesses" obtained from Everbridge's buying binge "have created incremental product line complexity that produce integration challenges and have complicated our go-to-market efforts." He also stated that Everbridge will pause engaging in any new M&A activity to focus on product integration, as well as significantly "simplify" and reduce its product offerings. Defendant Patrick Brickley, the other interim co-CEO and CFO, stated that the focus on product integration and simplification would alone result in an approximate $17 million of revenue loss. Brickley also disclosed that the decline in deal sizes "has been exacerbated by lingering effects of COVID," and that it would result in another $15 million reduction in revenues.
On all this news, Everbridge's common stock price fell another $15.68 per share, or 33.9 percent, to close at $30.61 per share on February 25, 2022.
For more information on the Everbridge class action go to: https://bespc.com/cases/EVBG
Embark Technology, Inc. (NASDAQ: EMBK)
Class Period: January 12, 2021 – January 5, 2022
Lead Plaintiff Deadline: May 31, 2022
Embark develops self-driving software solutions for the trucking industry in the U.S. The Company was originally a special purpose acquisition company, also called a blank-check company, which is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person.
On November 10, 2021, the Company consummated a merger transaction with Embark Trucks Inc., a Delaware corporation (“Legacy Embark”), whereby, among other things, the Company changed its name from “Northern Genesis Acquisition Corp. II” to “Embark Technology, Inc.” (the “Business Combination”).
The complaint alleges that throughout the Class Period, 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) the Company had performed inadequate due diligence into Legacy Embark; (ii) Legacy Embark and the Company following the Business Combination held no patents and an insignificant amount of test trucks; (iii) accordingly, the Company had overstated its operational and technological capabilities; (iv) as a result of all the foregoing, the Company had overstated the business and financial prospects of the Company post-Business Combination; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On January 6, 2022, The Bear Cave published a short report entitled “Problems at Embark Technology (EMBK)” (the “Bear Cave Report”). The Bear Cave Report alleged, among other issues, “that Embark appears to lack true economic substance” and that its “current evaluation appears to be based on puffery rather than actual substance”, noting that “[t]he company holds no patents, has only a dozen or so test trucks, and may be more bark than bite.”
On this news, Embark’s stock price fell $1.37 per share, or 16.75%, to close at $6.81 per share on January 6, 2022.
For more information on the Embark class action go to: https://bespc.com/cases/EMBK
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
