A securities class action has been filed AppHarvest, Inc. (APPH) on behalf of persons and entities that purchased or otherwise acquired AppHarvest securities between May 17, 2021 through August 10, 2021. This case has been filed in the USDC – S.D.N.Y.
On August 11, 2021, AppHarvest announced its second quarter 2021 financial results, reporting a $28.5 million net loss and a $4.5 million gross loss. The Company also lowered its full year sales guidance to the range of $7 million to $9 million from a prior range of $20 million to $25 million. AppHarvest attributed the shortfall to labor training and productivity challenges.
On this news, AppHarvest’s stock price fell $3.46 per share, or nearly 29%, to close at $8.51 per share on August 11, 2021, thereby injuring investors.
The Complaint 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 AppHarvest lacked sufficient training for its recently expanded labor force; (2) that, as a result, the Company could not produce Grade No. 1 tomatoes consistently; (3) that, as a result, the Company’s financial results would be adversely impacted; and (4) 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.