Shareholder rights law firm Robbins LLP reminds investors it is investigating the officers and directors of AppHarvest, Inc. (NASDAQ: APPH) to determine whether they violated the Securities Exchange Act of 1934 and breached their fiduciary duties to the Company. AppHavest is a sustainable food company that operates applied technology greenhouses to produce fresh, chemical-free, non-GMO fruits, vegetables, and related products.
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AppHarvest, Inc. (APPH) May Have Failed to Disclose Labor and Productivity Challenges to Investors
According to a class action complaint filed on behalf of purchasers of AppHarvest, the Company announced its first quarter 2021 financial results on May 17, 2021. In its quarterly report filed with the Securities and Exchange Commission for the same quarter, AppHarvest noted that Mastronardi is the Company's sole, exclusive marketing and distribution partner, and is only obligated to purchase products "at or above USDA Grade 1 standards and export quality standards within North America and of a quality required by Mastronardi's customers, in Mastronardi's sole determination."
On August 11, 2021, AppHarvest announced its second quarter financial results, reporting a $32.0 million net loss. The Company also lowered its full year sales guidance to a range of $7 million to $9 million, from a prior range of $20 million to $25 million. AppHarvest attributed the lower than expected results to "operational headwinds with the full ramp up to full production at the company's first CEA facility, including labor and productivity challenges related to the training and development of the new workforce and historically low market prices for tomatoes... Labor and productivity challenges resulted in lower net sales due to lower overall No. 1-grade production yields, including the impact of higher distribution and shipping fees." On this news, the Company's share price fell $3.46, or approximately 29%, to close at $8.51 per share on August 11, 2021. The stock currently trades under $6.00.
AppHarvest, Inc. (APPH) shareholders have legal options. If you own shares of AppHarvest, Inc., contact us to learn more about your rights.
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