Plug Power (PLUG) Faces Securities Fraud Class Action for Concealing its 2023 Liquidity Problems, According to Hagens Berman

SAN FRANCISCO, April 25, 2024 (GLOBE NEWSWIRE) -- Hagens Berman, a prominent national trial attorney firm, is urging investors who suffered substantial losses in Plug Power Inc. (NASDAQ: PLUG) to take action by submitting your losses here. The firm encourages individuals with relevant knowledge to assist in the investigation by contacting its attorneys.

Class Period: May 9, 2023 – Jan. 16, 2024 
Lead Plaintiff Deadline: May 21, 2024 
Website: www.hbsslaw.com/investor-fraud/PLUG 
Contact Email: [email protected]  Phone: 844-916-0895

Securities Fraud Class Action Against Plug Power Inc. (NASDAQ: PLUG): The lawsuit challenges Plug Power’s claims that its green hydrogen production plant construction was “on track” and that it had identified non-dilutive funding opportunities. The complaint alleges that Plug Power made misleading statements and failed to disclose the following:

1. Overstated Ability: Plug overstated its ability to mitigate the negative impacts of supply chain constraints and material shortages on its hydrogen business. It also exaggerated the sufficiency of its cash and capital to fund operations.
2. Delays and Funding Issues: The company continued to experience delays in its green hydrogen production facility build-out plans and faced challenges securing external funding sources for growth.
3. Downplayed Issues: Plug downplayed the severity of these issues until they were eventually revealed.
4. Overstated Prospects: As a result of the above, Plug also overstated the near-term prospects of its hydrogen production operations and the viability of expanding those operations.

Investors learned the truth on Nov. 9, 2023, when Plug announced dismal Q3 2023 results. The company blamed supply challenges in the North American hydrogen network and revealed liquidity problems that raised doubts about its ability to continue as a going concern. This news caused Plug shares to plummet by over 40% on Nov. 10, 2023. Subsequently, analyst downgrades followed. On Jan. 17, 2024, Plug’s shares dropped again after Seeking Alpha reported that Morgan Stanley analyst Andrew Percoco maintained an underweight rating and a $3 price target. The analyst also reportedly warned of the increasing likelihood that Plug would need to raise $1 billion to $1.5 billion in equity capital to support its 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