Plug Power (PLUG) Sued by Investors For Concealing its 2023 Liquidity Problems - Hagens Berman

SAN FRANCISCO, March 27, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Plug Power Inc. (NASDAQ: PLUG) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may be able to assist in the investigation to contact the firm’s attorneys.

Class Period: May 9, 2023 – Jan. 16, 2024
Lead Plaintiff Deadline: May 21, 2024
Visit: www.hbsslaw.com/investor-fraud/PLUG
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844-916-0895

Plug Power Inc. (NASDAQ: PLUG) Securities Fraud Class Action:

The litigation challenges Plug Power’s assurances that its buildout and construction of its green hydrogen production plants was “on track” and that it identified multiple non-dilutive opportunities to continue funding its operations.

The complaint alleges Plug Power made misleading statements and failed to disclose that: (1) Plug overstated its ability and efforts to mitigate the negative impacts that supply chain constraints and material shortages could and were having on its hydrogen business, as well as the sufficiency of its cash and capital to fund its operations; (2) it continued to experience delays related to its green hydrogen production facility build-out plans, as well as in securing external funding sources to finance its growth plans; (3) it downplayed the true scope and severity of all the foregoing as these issues were eventually revealed; and (4) as a result of all of the foregoing, Plug also overstated the near-term prospects of its hydrogen production operations, as well as the viability of expanding those operations.

Investors began to learn the truth on Nov. 9, 2023, when Plug announced dismal Q3 2023 results, blamed supply challenges in the hydrogen network in North America and revealed that its then current liquidity challenges raised substantial doubt about its ability to continue as a going concern. This news sent the price of Plug shares crashing $2.40, or down over 40%, on Nov. 10, 2023, and was followed by a wave of analyst downgrades.

Then, on Jan. 17, 2024, the price of Plug shares plunged again after Seeking Alpha reported that “Morgan Stanley analyst Andrew Percoco maintained his underweight rating and $3 price target” and “forecasts $1.26B of revenue and a negative 8% gross margin in 2024, compared to Wall Street consensus estimates for $1.69B in revenues and positive 4% gross margin.” In addition, the analyst reportedly warned of an increasing probability that Plug would need to raise $1B to $1.5B of equity capital to fund its highly capital-intensive business.

“We are investigating whether Plug may have deceived investors about the sufficiency of its liquidity,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.

If you invested in Plug Power and have substantial losses, or have knowledge that may assist the firm’s investigation, contact Hagens Berman now »

If you’d like more information and answers to frequently asked questions about the Plug Power case and our investigation, read more »

Whistleblowers: Persons with non-public information regarding Plug Power 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 [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

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Contact:
Reed Kathrein, 844-916-0895