AppHarvest, Inc.

  • Active

Investigation
09/24/2021

Initial Lawsuit
09/24/2021

Lawsuit Progression
12/13/2021

Investigation

  • Continous Holding
    May 17, 2021 to August 10, 2021
  • Proposed Claim
    Securities Violation

Investigation regarding AppHarvest’s statements about its labor force, operational headwinds and production ramp-up challenges.

Main Event

Q2 2021 - Ouch?

08/11/2021

SEC Filing

AppHarvest announces its Q2 2021 financial results, its second quarter as a publicly traded company. The company reports a net loss of $32 million as compared to a net loss of $1.6 million for Q2 2020.

“Second quarter 2021 results were adversely impacted by operational headwinds with the ramp up to full production at the company’s first CEA facility, including labor and productivity challenges related to the training and development of the new workforce and historically low market prices for tomatoes during the second quarter of 2021 based on USDA reports. Labor and productivity challenges resulted in lower net sales due to lower overall No. 1-grade production yields, including the impact of higher distribution and shipping fees.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$8.51 $11.97 $-3.46 -28.91%
See more on Factual Timeline

Initial Lawsuit

Plaintiff brings this securities class action on behalf of persons and entities that purchased or otherwise acquired AppHarvest securities between May 17, 2021 and August 10, 2021, inclusive.

  • Filing Date
    09/24/2021
  • Class Period
    05/17/2021 to 08/10/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Glancy Prongay & Murray LLP
  • Case Title
    Ragan v. AppHarvest, Inc. et al
  • Docket Number
    1:21-cv-07985
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, 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 allegedly 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.

Defendants

  • Company
    AppHarvest, Inc.
  • Chief Executive Officer
    Jonathan Webb
  • Chief Financial Officer
    Loren Eggleton

Lawsuit progression

  • Docket Number
    1:21-cv-07985
  • Court
    New York Southern District Court

Lead Counsel

12/13/2021

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Levi & Korsinsky, LLP
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead

Second Amended Complaint

07/25/2022

Lead Plaintiff Alan Narzissenfeld brings this action pursuant to 15 U.S.C. §§ 78j(b) and 78t(a) of the Securities Exchange Act of 1934 and 17 C.F.R. § 240.10b-5promulgated thereunder by the SEC, on behalf of himself and all persons and entities other than Defendants (defined in the 2nd amended complaint) who purchased or otherwise acquired securities of AppHarvest, Inc. (APPH), between February 1, 2021 and August 10, 2021, inclusive, and were injured thereby.

Motion to Dismiss

05/02/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”APPH” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

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