Shareholder rights law firm Robbins LLP is investigating Enservco Corporation (NYSE: ENSV) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws by delaying the filing of its year end and quarterly reports due to accounting errors. Enservco provides well enhancement and fluid management services to the onshore oil and natural gas industry in the U.S.
If you would like more information about our investigation into Enservco Corporation's misconduct, click here.
What is this Case About: According to the complaint filed against Enservco, defendants made false and/or misleading statements and/or failed to disclose that Enservco had defective disclosure controls and procedures and internal control over financial reporting. As a result, there were errors in Enservco’s financial statements relating to, inter alia, its transactions with Cross River Partners, a related party, and accounting for ERCs, a tax credit provided for under the CARES Act. Specifically, the Company improperly accounted for a conversion of debt to equity with Cross River Partners and "misinterpret[ed the] eligibility for certain employee retention tax credits under relevant provisions of the [CARES Act]." Accordingly, the Company would need to restate certain of its financial statements and delay the filing of its 2021 annual report with the SEC.
Ultimately, Enservco could not file its delayed 2021 annual report with the SEC within its initially represented timeline. A series of disclosures to the public and SEC regarding the delay negatively impacted the Company's stock price.
Next Steps: If you acquired shares of Enservco Coroporation (ENSV) securities between May 13, 2021 and April 19, 2022, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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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 Enservco Corporation settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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