ADVERTISEMENT
Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

SHAREHOLDER ALERT: Robbins LLP Reminds Investors of Lead Plaintiff Deadline in Class Action Against AppHarvest, Inc. (APPH)

November 3, 2021 GMT

SAN DIEGO, Calif. & MOREHEAD, Ky.--(BUSINESS WIRE)--Nov 3, 2021--

Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired AppHarvest, Inc. (NASDAQ: APPH) securities between May 17, 2021 and August 10, 2021, for violations of the Securities Exchange Act of 1934. AppHavest is a sustainable food company that operates applied technology greenhouses to produce fresh, chemical-free, non-GMO fruits, vegetables, and related products.

If you purchased shares of AppHarvest, Inc. (APPH) between May 17, 2021 and August 10, 2021, you have until November 23, 2021, to ask the court to appoint you lead plaintiff for the class. If you suffered a loss due to AppHarvest, Inc.’s misconduct, click here. All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

ADVERTISEMENT

AppHarvest, Inc. (APPH) Failed to Disclose Labor and Productivity Challenges to Investors

According to the complaint, AppHarvest became a public company following a business combination with Novus Capital Corporation that closed in January 2021. On May 17, 2021, AppHarvest announced its first quarter 2021 financial results and filed its quarterly report on Form 10-Q for the period ended March 31, 2021. That quarterly report noted that Mastronardi is the Company’s sole, exclusive marketing and distribution partner, and is only obligated to purchase products “at or above USDA Grade 1 standards and export quality standards within North America and of a quality required by Mastronardi’s customers, in Mastronardi’s sole determination.”

ADVERTISEMENT

On August 11, 2021, AppHarvest announced its second quarter financial results, reporting a $32.0 million net loss. The Company also lowered its full year sales guidance to a range of $7 million to $9 million, from a prior range of $20 million to $25 million. AppHarvest attributed the lower than expected results to “operational headwinds with the full 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... 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.” On this news, the Company’s share price fell $3.46, or approximately 29%, to close at $8.51 per share on August 11, 2021.

The complaint alleges that defendants failed to disclose to investors that AppHarvest lacked sufficient training for its recently expanded labor force, which hindered its ability to produce Grade No. 1 tomatoes consistently, adversely impacting the Company’s financial results.

Contact us to learn more:

Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against AppHarvest, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

Attorney Advertising. Past results do not guarantee a similar outcome.

View source version on businesswire.com:https://www.businesswire.com/news/home/20211103005452/en/

CONTACT: Aaron Dumas

Robbins LLP

5040 Shoreham Place

San Diego, CA 92122

adumas@robbinsllp.com

(800) 350-6003

www.robbinsllp.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES

SOURCE: Robbins LLP

Copyright Business Wire 2021.

PUB: 11/03/2021 11:53 AM/DISC: 11/03/2021 11:53 AM

http://www.businesswire.com/news/home/20211103005452/en