Plug Power Inc.

On November 9, 2023, Plug released its third quarter 2023 financial results, reporting GAAP earnings-per-share (“EPS”) of -$0.47, missing consensus estimates by $0.16, and revenue of $198.71 million, missing consensus estimates by $23.02 million. The Company blamed its poor performance on “unprecedented supply challenges in the hydrogen network in North America.”

On this news, Plug’s stock price fell $2.40, or 40.5%, to close at $3.53 per share on November 10, 2023, thereby injuring investors.

Then, on January 17, 2024, Seeking Alpha reported that analysts expected “further delays at Plug’s green hydrogen production facility” and “an increasing probability that Plug will need to raise $1B-$1.5B of equity and equity-like capital to fund its highly capital intensive business to provide itself runway to improve its margin and cash flow profile, which is not fully baked into the current share price.”

On this news, Plug’s stock price fell $0.30, or 9.9%, to close at $2.74 per share on January 17, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Plug overstated its ability and/or efforts to mitigate the negative impacts that, inter alia, supply chain constraints and material shortages could have or were having on the Company’s hydrogen business, as well as the sufficiency of its cash and capital to fund its operations; (2) Plug 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) Plug downplayed the true scope and severity of all the foregoing when these issues were eventually revealed; (4) as a result of all the foregoing, Plug also overstated the near-term prospects of its hydrogen production operations, as well as the viability of expanding those operations; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.