NEW YORK, NY / ACCESSWIRE / March 27, 2021 / Pomerantz LLP announces that a class action lawsuit has been filed against Renewable Energy Group, Inc. (“Renewable Energy” or the “Company”) (NASDAQ: REGI) and some of its officers. The class action lawsuit, filed in the US District Court for the Central District of California and filed under 21-cv-02244, is directed to a class comprised of all persons and entities other than defendants who purchase or otherwise acquire renewable energy securities have between May 3, 2018 and February 25, 2021 inclusive (the “Class Period”). Plaintiff is pursuing claims against defendants under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased renewable energy securities during the class period, you have until May 3, 2021 to petition the court to appoint you as the lead plaintiff for the class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S. Willoughby at email@example.com or toll free 888.476.6529 (or 888.4-POMLAW) ext. 7980. Those who inquire by email are encouraged to give their Provide postal address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Renewable energies provide clean, low-carbon fuels for transportation. It is North America’s largest producer of advanced biofuels.
The Biodiesel Tax Credit (“BTC”) is a federal biodiesel blend excise tax credit where the first person to mix pure biomass-based diesel with petroleum-based diesel fuel receives a refundable tax credit of $ 1.00 per gallon. This is an incentive shared in the advanced biofuels production and distribution chain through routine, daily trading and negotiation. The BTC was first implemented on January 1, 2005, but could expire and was then reintroduced, sometimes afterwards. In February 2018, the BTC was reinstated retrospectively for 2017, but not for 2018. In December 2019, the BTC was reinstated retrospectively for 2018 and 2019 and took effect from January 2020 to December 2022.
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The complaint alleges that throughout the classroom the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, operations and prospects. Specifically, Defendants have not notified investors: (1) that due to errors in the diesel additive system, petroleum diesel was not regularly added to certain loads of the Company, but was instead added by the Company’s customers; (2) As a result, Renewable Energy was not the correct applicant for certain BTC payments for biodiesel sold between January 1, 2017 and September 30, 2020. (3) that as a result, Renewable Energy’s revenues and net income were overstated for certain periods of time; (4) that the Company’s internal control over financial reporting related to the purchase and use of the petroleum diesel gallons when blended with biodiesel showed a material weakness; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations and prospects were materially misleading and / or unfounded.
On February 25, 2021, after the market closed, Renewable Energy released a press release announcing its fourth quarter and full year 2020 financial results. In it, the company announced that it would adjust “cumulative revenue of $ 38.2 million from January 2018 to September 30, 2020” because renewable energy was not the “correct applicant for certain BTC payments for biodiesel that were sold between January 1, 2017 and September 30, 2017. ” 2020. Renewable Energy said it had reached an agreement with the Internal Revenue Service “on a valuation of $ 40.5 million without interest” to correct these claims.
In that news, the company’s stock price fell $ 8.17, or 9.5%, in two consecutive trading sessions, closing at $ 77.77 per share on February 26, 2021 in an unusually high trading volume.
The Pomerantz law firm, with offices in New York, Chicago, Los Angeles and Paris, is recognized as one of the leading law firms in the fields of corporate, securities and antitrust litigation. Pomerantz Company was founded by the late Abraham L. Pomerantz, dean of class action lawsuits, and pioneered class action lawsuits. Today, more than 80 years later, the Pomerantz company continues its tradition of fighting for the rights of victims of securities fraud, fiduciary violations and corporate misconduct. The company has reclaimed numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com.
SOURCE: Pomerantz LLP
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