enCore Energy (EU) Faces Securities Class Action As Investors Scrutinize Financial Reporting and Leadership Shakeup – Hagens Berman

EU Investors with Losses Encouraged to Contact the Firm

/EIN News/ -- SAN FRANCISCO, March 18, 2025 (GLOBE NEWSWIRE) -- A securities class action has been filed against enCore Energy Corp. (NASDAQ: EU), a uranium extraction company positioning itself as "America's Clean Energy Company," which saw its stock plummet 46% on Mar. 3, 2025, following a series of troubling disclosures. The suit, captioned Zhongjian v. enCore Energy Corp., et al., No. 4:25-cv-01234 (S.D. Tex.), seeks to represent investors who purchased enCore securities between March 28, 2024 and March 2, 2025.

Prominent investor rights firm Hagens Berman is investigating the claims and urges investors who purchased enCore Energy shares and suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge that may assist the firm’s investigation to contact its attorneys.

Class Period: Mar. 28, 2024 – Mar. 2, 2025
Lead Plaintiff Deadline: May 13, 2025
Visit: www.hbsslaw.com/investor-fraud/eu
Contact the Firm Now: EU@hbsslaw.com
                                            844-916-0895

enCore Energy Corp. (EU) Securities Class Action:

The litigation is focused on the propriety of enCore’s statements about its financial reporting, including the state of its internal controls over financial reporting.

The complaint alleges that enCore made false and misleading statements while failing to disclose crucial information to investors. The suit alleges that enCore:

• lacked sufficient internal controls over financial reporting;
• could not capitalize certain exploratory and development costs under applicable accounting rules; and
• as a result, its net losses had substantially increased.
  

Investors learned the truth on March 3, 2025, when enCore announced that its FY 2024 net loss more than doubled from FY 2023. The company blamed its dismal results on “the inability to capitalize certain exploratory and development costs under U.S. GAAP which would have been capitalized under IFRS [International Financial Reporting Standards].”

In addition, enCore announced that CEO Paul Goranson had been replaced effective immediately and revealed serious weaknesses in its internal control over financial reporting, in stark contrast to its March 28, 2024 assurances that its CEO and CFO had assessed the effectiveness of internal controls as of December 31, 2023, declaring them "effective" with "no material weaknesses" discovered.

enCore’s newly revealed internal control issues are extensive. The company admitted to ineffective design, implementation, and operation of process-level control activities related to financial reporting processes. Management attributed these weaknesses to an ineffective control environment, resulting in inadequate risk management, information and communications, and monitoring activities.

Furthermore, enCore acknowledged a lack of effective risk assessment processes for internal control over financial reporting. This deficiency led to unclear financial reporting objectives and insufficient evaluation of risks, including those stemming from changes in the external environment and business operations.

Reed Kathrein, the Hagens Berman Partner leading the investigation, stated, “We are investigating the extent to which enCore's admitted control weaknesses may have been unknown to investors and the extent to which they may have adversely impacted its financial results.”

If you invested in enCore and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the enCore case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding enCore should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email EU@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895