Lawsuit filed for Investors in shares of Enservco Corporation (NYSE American: ENSV)

An investor, who purchased shares of Enservco Corporation (NYSE American: ENSV), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by Enservco Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Enservco Corporation (NYSE American: ENSV) have certain options and for certain investors are short and strict deadlines running. Deadline: July 19, 2022. NYSE American: ENSV investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Longmont, CO based Enservco Corporation, through its subsidiaries, provides well enhancement and fluid management services to the onshore oil and natural gas industry in the United States.
In August 2020, Enservco Corporation's Board of Directors approved a transaction to, inter alia, exchange 50% of the Company's subordinated debt with Cross River Partners, L.P. ("Cross River Partners"), a related party. Enservco's Chief Executive Officer, Richard A. Murphy, is managing member of Cross River Capital Management, LLC, the general partner of Cross River Partners.

On February 3, 2021, Enservco Corporation exchanged the remaining 50% of its subordinated debt with Cross River Partners. In addition, Enservco Corporation awarded a warrant to Cross River Partners to purchase up to 150,418 additional shares of the Company's common stock in the future at an exercise price of $2.507 per share.

During the second quarter of 2021, Enservco Corporation amended payroll tax returns originally filed for the third and fourth quarters of 2020 to claim refundable Employee Retention Credits ("ERCs")-a type of tax credit provided for under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act")-for those periods.

On March 28, 2022, Enservco Corporation disclosed that it had "concluded that the Company's previously issued condensed consolidated financial statements as of and for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021" (collectively, the "Relevant Periods") "should no longer be relied upon largely because of the Company's accounting for a conversion of debt to equity with a related party," namely, Cross River Partners. The Company further advised that it had "misinterpret[ed the] eligibility for certain employee retention tax credits under relevant provisions of the [CARES Act]" and would "amend its Quarterly Reports on Form 10-Q for the Relevant Periods to reflect restatements of its condensed consolidated financial statements for the Relevant Periods."
On March 31, 2022, Enservco Corporation disclosed that it could not timely file the Company's annual report on Form 10-K with the SEC for the quarter and year ended December 31, 2021 because the Company was "in the process of restating [its] financial statements and preparing amendments to its Quarterly Reports on Form 10-Q filings for the Relevant Periods, which must be completed prior to the completion and filing of the [Company]'s Annual Report on Form 10-K for the period ended December 31, 2021."

On April 4, 2022, Enservco Corporation disclosed that its Chief Financial Officer, Marjorie A. Hargrave, "is departing the Company and will no longer be an executive officer and employee of the Company effective April 22, 2022."

On April 11, 2022, Enservco Corporation filed amended quarterly reports with the SEC for the Relevant Periods, each of which reported adjusted net losses that increased, and adjusted other income that decreased, significantly for their respective periods.

Then, on April 18, 2022, Enservco Corporation disclosed that it had "concluded that the Company's previously issued condensed consolidated financial statements as of and for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021 (collectively, the 'Relevant Periods'), should no longer be relied upon due to the Company's utilization of certain deferred tax liabilities in 2021." Enservco Corporation added that it "intends to amend its Quarterly Reports on Form 10-Q for the Relevant Periods to reflect restatements of its condensed consolidated financial statements for the Relevant Period."

The plaintiff claims that between May 13, 2021 and April 18, 2022, the 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, that as a result, there were errors in Enservco's financial statements relating to, inter alia, its transactions with Cross River Partners and accounting for ERCs, that accordingly, the Company would need to restate certain of its financial statements and delay the filing of its 2021 annual report with the U.S. Securities and Exchange Commission ("SEC"), that the Company downplayed the true scope and severity of its financial reporting issues, that accordingly, the Company could not file its delayed 2021 annual report with the SEC within its initially represented timeline, and that as a result, the Company's public statements were materially false and misleading at all relevant times.

Those who purchased shares of Enservco Corporation (NYSE American: ENSV) have certain options and should contact the Shareholders Foundation.

Contact:
Christopher Clausen
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.