NEW
YORK, May 24, 2023 /PRNewswire/ -- The Gross Law
Firm issues the following notice to shareholders of Vertex
Energy, Inc..
Shareholders who purchased shares of VTNR during the class
period listed are encouraged to contact the firm regarding possible
lead plaintiff appointment. Appointment as lead plaintiff is not
required to partake in any recovery.
CONTACT US HERE:
https://securitiesclasslaw.com/securities/vertex-energy-inc-loss-submission-form/?id=39773&from=4
CLASS PERIOD: April 1, 2022
to August 8, 2022
ALLEGATIONS: The complaint alleges that during the class
period, Defendants issued materially false and/or misleading
statements and/or failed to disclose that: (a) prior to the
acquisition of the oil refinery in Mobile, Alabama, defendants had entered into
inventory and crack spread hedging derivatives that significantly
capped the profit margins on 50% of the Mobile refinery's expected output over the
period April 1, 2022 to September 30, 2022, affecting over 6.5 million
barrels of refined fuel output. These hedges severely limited
Vertex's ability to capitalize on the record-high crack spreads
that existed at the time of the acquisition and resulted in over
$90 million in losses in the second
quarter of fiscal year 2022; (b) prior to the acquisition of the
Mobile refinery, defendants had
entered into an inventory intermediation agreement with the
investment bank Macquarie Group, whereby Macquarie purchased (from
third parties), owned, and sold (to Vertex) all crude oil inventory
to be used at the Mobile refinery
and also purchased (from Vertex), owned, and sold (to third
parties) all refined fuel inventory produced at the Mobile refinery. The strict terms of the
arrangement, including requiring Vertex to purchase hedges to
protect Macquarie's position in holding the crude and refined
inventory, combined with the fact that the oil market was in a
state of backwardation in early 2022, resulted in Vertex incurring
significant fees and inventory losses. The losses, which began as
of the April 1, 2022 acquisition
date, totaled $23 million during the
second quarter of fiscal year 2022; (c) prior to the acquisition of
the Mobile refinery, defendants had entered into an inventory
purchase agreement with Shell Oil as part of the Mobile acquisition
agreement. Vertex had anticipated purchasing approximately $100
million of crude oil and refined fuel inventory. Immediately prior
to the closing of the acquisition, Vertex learned that pursuant to
the terms of the purchase agreement, it would be required to
purchase substantially more inventory from Shell Oil, totaling $164
million. Due to the state of backwardation in the oil market,
Vertex was forced to pay Shell Oil above-market prices for the
additional crude oil inventory. The additional Shell Oil inventory
purchase triggered $13.3 million in inventory losses at or around
the time of the acquisition; (d) immediately following the
acquisition of the Mobile refinery, Vertex experienced production
issues that caused significant shortfalls in refined fuel volumes.
The production issues resulted in $8 million of lost profits during
the second quarter of fiscal year 2022; (e) following the
acquisition of the Mobile refinery, defendants overstated the
purported profit margins that could be achieved at the refinery.
Defendants represented that the "3-2-1 crack spread" was the
appropriate benchmark for the Mobile refinery; however it was later
revealed that the "2-1-1 crack spread," which resulted in lower
profits per barrel of production, was the more accurate profit
benchmark for the Mobile refinery; and (f) as a result of the above
misrepresentations and concealed facts, the Mobile refinery did not
"generate[] strong EBITDA]" "[d]uring the first 30 days of
operations," and the Mobile refinery transition was not
"seamless."
DEADLINE: June 12, 2023
Shareholders should not delay in registering for this class action.
Register your information here:
https://securitiesclasslaw.com/securities/vertex-energy-inc-loss-submission-form/?id=39773&from=4
NEXT STEPS FOR SHAREHOLDERS: Once you register as a
shareholder who purchased shares of VTNR during the timeframe
listed above, you will be enrolled in a portfolio monitoring
software to provide you with status updates throughout the
lifecycle of the case. The deadline to seek to be a lead plaintiff
is June 12, 2023. There is no cost or
obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally
recognized class action law firm, and our mission is to protect the
rights of all investors who have suffered as a result of deceit,
fraud, and illegal business practices. The Gross Law Firm is
committed to ensuring that companies adhere to responsible business
practices and engage in good corporate citizenship. The firm seeks
recovery on behalf of investors who incurred losses when false
and/or misleading statements or the omission of material
information by a company lead to artificial inflation of the
company's stock. Attorney advertising. Prior results do not
guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: dg@securitiesclasslaw.com
Phone: (646) 453-8903
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SOURCE The Gross Law Firm