SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Southern District of New York on behalf of purchasers of Renewable Energy Group, Inc. (NASDAQ:REGI) securities between May 3, 2018 and February 25, 2021, inclusive (the “Class Period”). The case is captioned Ramsey v. Renewable Energy Group, Inc., No. 1:21-cv-01832 (S.D.N.Y.), and is assigned to Judge Denise Cote. The Renewable Energy class action lawsuit charges Renewable Energy and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Renewable Energy securities during the Class Period to seek appointment as lead plaintiff in the Renewable Energy class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Renewable Energy class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Renewable Energy class action lawsuit. An investor’s ability to share in any potential future recovery of the Renewable Energy class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Renewable Energy class action lawsuit or have questions concerning your rights regarding the Renewable Energy class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at malbert@rgrdlaw.com. Lead plaintiff motions for the Renewable Energy class action lawsuit must be filed with the court no later than May 3, 2021.
Renewable Energy provides clean, low carbon transportation fuels. Renewable Energy is North America’s largest producer of advanced biofuels. The biodiesel tax credit (“BTC”) is a federal biodiesel mixture excise tax credit whereby the first person to blend pure biomass-based diesel with petroleum-based diesel fuel receives a $1.00-per-gallon refundable tax credit.
The Renewable Energy class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) due to failures in the diesel additive system, petroleum diesel was not periodically added to certain loads by Renewable Energy and was instead added by Renewable Energy’s customers; (ii) as a result, Renewable Energy was not the proper claimant for certain BTC payments on biodiesel it sold between January 1, 2017 and September 30, 2020; (iii) consequently, Renewable Energy’s revenue and net income were overstated for certain periods; (iv) there was a material weakness in Renewable Energy’s internal control over financial reporting related to the purchase and use of the petroleum diesel gallons when blending with biodiesel; and (v) as such, defendants’ positive statements about Renewable Energy’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On February 25, 2021, Renewable Energy revealed that it would restate “$38.2 million in cumulative revenue from January 2018 through September 30, 2020” because Renewable Energy was not the “proper claimant for certain BTC payments on biodiesel it sold between January 1, 2017 and September 30, 2020.” Renewable Energy further disclosed that it had reached an agreement with the Internal Revenue Service “on a $40.5 million assessment, excluding interest” to correct these claims. On this news, Renewable Energy’s share price fell nearly 10% over two consecutive trading sessions, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
