enCore Energy (EU) Faces Investor Lawsuit Amid Financial Reporting Woes, Leadership Shakeup – Hagens Berman

EU Investors with Losses Encouraged to Contact the Firm

/EIN News/ -- SAN FRANCISCO, April 11, 2025 (GLOBE NEWSWIRE) -- A class-action lawsuit has been filed against enCore Energy Corp. (NASDAQ: EU), a uranium exploration and development company, alleging violations of the Securities Exchange Act of 1934. The suit, Zhongjian v. enCore Energy Corp., No. 25-cv-01234 (S.D. Tex.), represents investors who purchased enCore securities between March 28, 2024, and March 2, 2025.

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 complaint accuses enCore Energy and certain executives of issuing misleading statements and failing to disclose critical financial weaknesses during the class period. Specifically, it alleges that the company lacked effective internal controls over financial reporting and could not capitalize certain exploratory and development costs under U.S. Generally Accepted Accounting Principles (GAAP). These issues reportedly led to a substantial increase in net losses.

On March 3, 2025, enCore disclosed its fiscal 2024 financial results, revealing a net loss of $61.3 million—more than double the $25.6 million loss reported in the previous fiscal year. The company attributed this increase to its inability to capitalize certain costs under GAAP, which would have been permissible under International Financial Reporting Standards (IFRS). Additionally, enCore acknowledged identifying a "material weakness" in its internal controls over financial reporting in 2024, citing deficiencies in risk assessment and monitoring processes.

The financial turmoil coincided with a leadership shake-up at the company. On March 2, 2025, enCore announced that Paul Goranson had stepped down as CEO and board member. Robert Willette, previously Chief Legal Officer, was appointed Acting Chief Executive Officer by the board of directors.

Following these revelations, enCore's stock price plummeted by more than 46%, prompting shareholder scrutiny. The lawsuit seeks damages for investors who suffered losses during the class period as a result of Defendants’ alleged wrongdoing.

Hagens Berman’s Investigation:

An investigation has been launched by prominent investor rights firm Hagens Berman into the company’s financial reporting practices.

Reed Kathrein, a partner at Hagens Berman leading the investigation, commented on the allegations: “Investors rely on accurate financial reporting to make informed decisions. enCore’s alleged failure to disclose material weaknesses in its internal controls and the impact of improper cost capitalization raises serious questions about whether shareholders were misled about the company’s financial health.”

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