We are investigating Renewable Energy Group, Inc. (REGI) (“Renewable Energy” or the “Company”) for potential violations of the federal securities laws.
On June 23, 2020, Renewable Energy issued a press release “announc[ing] that the Company’s second quarter 2020 Adjusted EBITDA is expected to be between negative $12 million and negative $2 million,” down sharply from the range of $20 million to $35 million that the Company had previously announced on April 30, 2020. Explaining its significantly revised outlook, Renewable Energy advised investors that “[t]he guidance model used in connection with the previous estimate contained inadvertent calculation errors, which on their own would have resulted in a significant reduction in the Company’s previous Adjusted EBITDA estimate.” On this news, Renewable Energy’s stock price fell $5.85 per share, or 20.47%, to close at $22.73 per share on June 24, 2020.