Plug Power Faces Lawsuit Over Allegedly False and Misleading Statements Regarding Business Operations

Plug Power Inc. is facing a lawsuit filed in the United States District Court for the District of Delaware. The lawsuit has been filed on behalf of all persons and entities who purchased or acquired Plug securities between August 9, 2022, and March 1, 2023. The investors have time until June 12, 2023, to apply to the Court to be appointed as lead plaintiff in the lawsuit.

Plug had assured its investors of a “Strong Business Outlook” and had projected revenue growth of 80% year-over-year, between $900 million and $925 million, in its financial results for the second quarter of 2022, which were announced on August 9, 2022. However, a few months later, on October 14, 2022, Plug warned investors that full-year revenue could be 5% to 10% lower than previously projected, attributing the revision to larger projects being completed in 2023 instead of 2022 and broader supply chain issues. This news resulted in the price of Plug common stock declining more than 6%.

On November 8, 2022, Plug reported decreased gross margins and a further increase in inventory levels, causing the price of its common stock to decline more than 1%. On January 25, 2023, Plug revealed that it now expected to generate year-over-year revenue growth of just 45% to 50% in 2022, despite Defendants’ previous assurances of at least 60% growth. Following this revelation, the price of Plug common stock declined approximately 6%.

Then, after the market closed on March 1, 2023, Plug announced its financial results for the fourth quarter and full year 2022, reporting full-year revenue growth of just 40% on a year-over-year basis, missing even the reduced guidance range provided just a few weeks prior. This news resulted in the price of Plug common stock declining more than 6%.

The Complaint alleges that Plug had made materially false and/or misleading statements and failed to disclose material adverse facts about its business and operations throughout the Class Period. The lawsuit claims that Plug was unable to effectively manage its supply chain and product manufacturing, resulting in reduced revenues and margins, increased inventory levels, and several large deals being delayed until at least 2023, among other issues. As a result, Defendants’ statements about the company’s business, operations, prospects, and ability to effectively manage its supply chain and production lacked a reasonable basis.