Shares of enCore Energy Corp. fell over 45% on March 3, 2025, after the company delayed filing its Form 10-K, citing material weaknesses in internal controls over financial reporting. enCore's auditor, KPMG, also issued an adverse opinion on internal controls. The announcement follows leadership changes, including the departure of the company's CEO, Paul Goranson.
The lawsuit alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that enCore lacked effective internal controls over financial reporting; (2) that enCore could not capitalize certain exploratory and development costs under GAAP; (3) that, as a result, its net losses had substantially increased; and (4) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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