Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
AppHarvest Stock Class Action Lawsuit Overview:
- Who: A class action lawsuit has sprouted against AppHarvest, Inc.
- What: Investors say the company misled them about the sustainable food company’s ability to grow and sell tomatoes, causing stock prices to wither.
- Where: The lawsuit seeks to represent AppHarvest investors nationwide.
The sustainable food company, AppHarvest Inc, wasn’t honest with investors about its tomato crops, and when the truth came out, its share price plummeted almost 30 percent, a new class action lawsuit alleges..
On Monday, investors in AppHarvest planted a class action lawsuit against the company alleging violations of federal securities laws, according to a statement made by the law firm representing the plaintiffs.
The lawsuit seeks to represent anyone who bought AppHarvest securities between May 17 and Aug 10, 2021.
AppHarvest is a sustainable food company that operates hi-tech greenhouses to produce chemical-free, non-GMO fruits and vegetables.
Sustainable Food Co Hides Labor, Production Problems From AppHarvest Investors
The plaintiffs allege that, prior to Aug 11, even though AppHarvest was having problems training its recently expanded labor force and could not produce Grade No. 1 tomatoes consistently, it continued making positive statements about its operations.
“Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis,” the lawsuit says.
Everything fell apart on Aug. 11, when AppHarvest announced its second quarter financial results, reporting a $32.0 million net loss, the lawsuit states.
The surprising announcement also saw the company lower 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 plaintiffs say.
AppHarvest attributed the results to labor and productivity challenges and “historically low market prices for tomatoes.”
On this news, the company’s share price fell $3.46, or approximately 29 percent, to close at $8.51 per share, the lawsuit says.
The plaintiffs say they lodged the class action to recoup their losses.
This is not the first time tomatoes have been at the center of a class action lawsuit. In 2019, a class action lawsuit alleged that San Marzano tomatoes sold by Cento Fine Foods were misrepresented, and are really less desirable tomatoes than marketed.
Did you invest in AppHarvest or another company that lost money after labor or production problems were revealed? Let us know in the comments!
The plaintiffs are represented by The Law Offices of Frank R. Cruz.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Gerber Broke Public Trust By Selling Baby Food With High Levels Of Toxic Heavy Metals, Class Action Says
- Class Action Lawsuits Claiming Tyson Foods Supervisors Made Bets on How Many Plant Workers Would Contract COVID-19 is in Limbo Between State and Federal Court
- Chick-fil-A Delivery Customers Served With Secret Upcharges, Says Class Action
- Ready Pac Foods, Inc. Recalls Ready-to-Eat Salad Products Containing Meat and Poultry due to Misbranding and Undeclared Allergen
2 thoughts onAppHarvest Misled Investors About Ability to Grow, Sell Tomatoes, Class Action Alleges
The puns !!!
Add me