Ess Tech, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Oregon on behalf of those who acquired Ess Tech, Inc. (“Ess Tech” or the “Company”) (NYSE: GWH) securities between August 11, 2022 through December 7, 2022 (the “Class Period”). Investors have until March 13, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Ess Tech designs, builds, and deploys iron flow batteries for long-duration commercial and utility-scale energy storage applications.
On December 7, 2022, Grizzly Research released a report, entitled “Caught Red-Handed—We Present Evidence that ESS Tech’s Biggest Customer is Really an Undisclosed Related Party Without Operations.” The report revealed, among other things, that ESS Tech misrepresented its revenue and that several investors had left the Company in July of 2022; the report also questioned whether one of its major projects (a purported agreement with Energy Storage Industries Asia Pacific) even existed. On this news, the price of Ess Tech shares declined by $0.22 per share, or approximately 7.69%, from $2.86 per share to close at $2.64 on December 7, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (1) the purported agreement with Energy Storage Industries Asia Pacific (“ESI”) was in fact an undisclosed related party transaction because ESI was a de-facto subsidiary of ESS masquerading as third-party client; and (2) ESS misled investors with their partnership announcement to signal business success to investors.