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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against ...

September 27, 2021 GMT

NEW YORK, Sept. 27, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against AppHarvest, Inc. (“AppHarvest” or the “Company”) (NASDAQ: APPH) in the United States District Court for the Southern District of New York on behalf of those who purchased AppHarvest securities between May 17, 2021 and August 10, 2021, both dates inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (i) the Company lacked sufficient training for its recently expanded labor force; (ii) as a result, the Company could not produce Grade No. 1 tomatoes consistently; (iii) consequently, the Company’s financial results would be adversely impacted; and (iv) as such, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

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On August 11, 2021, the Company announced its second quarter 2021 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. The Company attributed the lower-than-expected results to “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.” On this news, the Company’s share price fell approximately 29%, damaging investors.

Investors who purchased or otherwise acquired shares of AppHarvest should contact the Firm prior to the November 23, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.