ENSV - ENSERVCO ALERT: Bragar Eagel & Squire P.C. is Investigating Enservco Corporation on Behalf of Long-Term Stockholders and Encourages Investors to Contact the Firm | Benzinga
NEW YORK, Jan. 09, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Enservco Corporation (NYSE:ENSV) on behalf of long-term stockholders following a class action complaint that was filed against Enservco on May 20, 2022 with a Class Period from March 23, 2021 to September 1, 2022. Our investigation concerns whether the board of directors of Enservco have breached their fiduciary duties to the company.
Enservco, through its subsidiaries, provides well enhancement and fluid management services to the onshore oil and natural gas industry in the United States. Recently, the Company has employed several tactics in an apparent effort to strengthen its balance sheets. For example, in August 2020, Enservco'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, Defendant Richard A. Murphy, is managing member of Cross River Capital Management, LLC, the general partner of Cross River Partners. On February 3, 2021, Enservco exchanged the remaining 50% of its subordinated debt with Cross River Partners. In addition, the Company 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. Moreover, during the second quarter of 2021, Enservco 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. The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose ...