Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Enovix Corporation (ENVX)

NEW YORK, Jan. 10, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Northern District of North California on behalf of all persons or entities who purchased the securities of Enovix Corporation ("Enovix" or the "Company") ENVX between February 22, 2021 and January 3, 2023, both dates inclusive (the "Class Period").

On July 14, 2021, Enovix was officially acquired by Rodgers Silicon Valley Acquisition Corp., which then changed its name to Enovix Corporation. Shares of Enovix began trading on July 15, 2021.

The Complaint alleges that Defendants touted the Company's ability to "deliver at scale due to its proprietary 3D cell architecture, world-class team and automated manufacturing." Indeed, by March 2022, defendants claimed the Company had a $1.5 billion "revenue funnel" that it could tap into as soon as it could produce to scale. However, Defendants failed to disclose material adverse facts about Enovix's ability to manufacture its proprietary battery technology.

On November 1, 2022, Enovix announced its financial results for the third quarter of 2022, revealing it realized just $8,000 in revenue. Moreover, it revealed that it would be "dialing back" its work on improving the Gen1 lines in favor of shifting its focus to its future Gen2 lines because the supposed improvements were not having the desired results on output. Consequently, Enovix "anticipate[d] achieving lower overall output from Fab-1 in 2023." In fact, Enovix revealed it anticipated producing fewer than one million batteries in 2023. On this news, Enovix's share price fell 44%, from a close of $18.87 per share on October 31, 2022, to $10.53 per share on November 2, 2022.

Then, on November 7, 2022, Enovix announced that defendant Rodgers would assume the role of Executive Chairman. In a statement released that day, Rodgers criticized his own company for a "lack of clear and transparent investor communications" and conceded: "We have poorly communicated on the status of Fab-1."

Finally, on January 3, 2023, Rodgers held a special presentation for investors. On the call, Rodgers revealed that the Company's second production facility and Gen2 lines would be delayed by several additional months because of the equipment failures experienced in the Fab-1 lines. On this news, Enovix's share price dropped 41% to close at $7.15 per share on January 4, 2023.

Investors who purchased or otherwise acquired shares of Enovix should contact the Firm prior to the March 7, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.