The lawsuit further alleges that, on March 3, 2025, enCore Energy announced its fiscal 2024 financial results, reporting a net loss of $61.3 million — more than double its net loss of $25.6 million in the prior fiscal year. According to the complaint, enCore Energy attributed part of the increased loss to "[t]he inability to capitalize certain exploratory and development costs under U.S. GAAP which would have been capitalized under IFRS [International Financial Reporting Standards]." Additionally, enCore Energy disclosed that it had identified a "material weakness" in its internal controls over financial reporting in 2024, citing an "ineffective control environment" that led to deficiencies in risk assessment, information and communication processes, and monitoring activities. Following these disclosures, the price of enCore Energy stock declined by more than 46%, according to the complaint.