A class action lawsuit was filed against Plug Power Inc. (NASDAQ:PLUG) on March 22, 2024. The plaintiffs (shareholders) alleged that they bought PLUG stock at artificially inflated prices between May 9, 2023 and January 16, 2024 (Class Period) and are now seeking compensation for their financial losses. Investors who bought PLUG stock during that period can click here to learn about joining the lawsuit.
Plug Power is one of the largest green hydrogen companies in North America and Europe. Its hydrogen fuel cell technology is used in electric mobility and stationary power markets. The company also focuses on fuel cell-battery hybrid technologies and related hydrogen storage and dispensing infrastructure.
The plaintiffs maintain that Plug Power and two of its senior officers deceived investors by repeatedly lying and withholding vital information about delays in the build-out plans of its green hydrogen production facility and other matters, from SEC filings and related material.
The truth became clear in a series of events between November 9, 2023 and January 17, 2024, when several analysts downgraded PLUG stock after the company reported weak results for Q3 FY23. Moreover, a report by Seeking Alpha noted that Morgan Stanley analyst Andrew Percoco believes that Plug Power could announce further delays at its green hydrogen production project in Georgia at its January business update. The report also noted that this delay would add further pressure on the growth and profitability profile of the company’s green hydrogen business model.
Interestingly, during the Class Period, the defendants have often mentioned the success of the company’s turnkey construction contracts at various sites. Plus, Plug Power stated in a shareholder letter that its “manufacturing scale, green hydrogen build-out, and vertically integrated business model sets up an inflection point in both revenue and path to profitability.” Finally, PLUG also noted that it is actively soliciting debt capital solutions for corporate-level debt and green hydrogen infrastructure projects.
As per the class action lawsuit, Plug Power caused its stock to trade at artificially inflated prices by knowingly and recklessly misleading investors about the company’s business and prospects during the Class Period.
Notably, PLUG stock has lost 71.6% in the past year, causing massive damage to shareholders’ returns.
