NEW YORK, NY / ACCESSWIRE / January 31, 2023 / Pomerantz LLP announces that a class action lawsuit has been filed against certain officers and directors of Enovix Corporation (or Rodgers Silicon Valley Acquisition Corp. ('RSVAC') ('Enovix' or the 'Company') (NASDAQ:ENVX; RSVAC). The class action, filed in the United States District Court for the Northern District of California, and docketed under 23-cv-00372, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Enovix common stock (or RSVAC common stock prior to July 15, 2021) between February 22, 2021, through January 3, 2023, inclusive (the 'Class Period'). This action is brought on behalf of the Class for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the 'Exchange Act'), 15 U.S.C. §§ 78j(b) and 78t(a) and Rule 10b-5 promulgated thereunder by the SEC, 17 C.F.R. § 240.10b-5.
If you are a shareholder who purchased or otherwise acquired Enovix common stock or RSVAC during the Class Period, you have until March 7, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
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Enovix purports to design, develop, and manufacture silicon-anode lithium-ion batteries using proprietary 3D cell architecture, which the Company claims allow its batteries to achieve higher energy density. Enovix hopes to customize and deliver its batteries to other companies which can then incorporate them into their consumer electronics, such as wearable smartwatches, VR headsets, laptop computers, mobile phones, and electric vehicles. Since launching in 2007, the Company has focused on developing and commercializing its batteries. It did not generate any revenue from its products until the second quarter of 2022.
On February 22, 2021, Enovix announced plans to become a publicly traded company. At that time, Enovix set an 'ambitious goal' to both develop its own U.S.-based manufacturing line and to begin delivering products to customers (thereby recognizing its first product revenue) by the second quarter of 2022.
Five months after this announcement, on July 15, 2021, Enovix became a publicly traded company. Rather than go public through a traditional initial public offering, Enovix used a novel method that sidesteps the normal regulatory framework and shareholder protections of the traditional IPO. Enovix merged with a special purpose acquisition company ('SPAC'), a public shell corporation with no business of its own other than to acquire a private company. On July 14, 2021, Enovix was officially acquired by RSVAC, which then changed its name to Enovix Corporation. As a result of this 'de-SPAC' transaction, RSVAC's publicly-traded shares became shares of Enovix when trading opened on the Nasdaq Global Select Market ('Nasdaq') the following day.
RSVAC's Chairman and Chief Executive Officer, Defendant Thurman J. Rodgers, ('Rogers') stayed on as a member of Enovix's board of directors following the de-SPAC transaction.
Enovix raised $405 million from investors through its de-SPAC merger with RSVAC. In a July 14, 2021 press release, the Company announced that the gross cash proceeds raised through the transaction would 'allow Enovix to build out its first two production facilities to support demand from blue chip customers in the global mobile computing market while continuing to develop cells for Electric Vehicles (EVs).'
The Complaint alleges that throughout the Class Period, starting with statements made at the time of the de-SPAC, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about Enovix's revenues and ability to manufacture its proprietary battery technology. Specifically, the statements overstated the Company's ability to product batteries at scale, touting the Company's 'meaningful progress' in scaling up its manufacturing facility, and its being positioned to deliver batteries ahead of competitors, despite its continued manufacturing issues.
On November 1, 2022, Defendants disclosed that the Company would shift its focus from its Gen1 line to developing its Gen2 lines and accordingly reduced its projections for Fab-1 production in 2023. On this news, the Company fell from a close of $18.87 per share on October 31, 2022, to $10.53 per share by the close of trading on November 2, 2022, a 44% percent decline in share price.
On January 3, 2023, Defendant Rodgers hosted a special presentation for investors. During this presentation, he announced that the Company's Gen2 manufacturing lines would be further delayed because of the need to avoid the same problems plaguing the Gen1 lines.
On this news, the Company's shares price dropped 41% from a close of $12.12 per share on January 3, 2023 to a close of $7.15 per share on January 4, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Robert S. Willoughby
888.476.6529 (or 888.4-POMLAW), Ext. 7980
SOURCE: Pomerantz LLP
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