Plug Power, Inc.
Lead Plaintiff Deadline 06/12/2023
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 Delaware on behalf of those who acquired Plug Power Inc. (“Plug” or the “Company”) (NASDAQ: PLUG) securities during the period from August 9, 2022 through March 1, 2023 (the “Class Period”). Investors have until June 12, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Plug is a hydrogen fuel cell company that develops power systems for use in electric vehicles, stationary power units, and other purposes.
On October 14, 2022, Defendants announced that the Company’s “prior full year 2022 revenue guidance of $900-925M could be 5%-10% lower for the year” and attributed this revised guidance to “some larger projects potentially being completed in 2023 instead of 2022 due to timing and broader supply chain issues.” On this news, the price of Plug shares declined by $1.20 per share, or approximately 6.24%, from $19.23 per share to close at $18.03 on October 14, 2022.
On November 8, 2022, the Company reported its financial results for the third quarter of 2022, revealing that—contrary to Defendants’ prior claims of substantial growth in the second half of 2022—the Company’s gross margins had decreased 3% sequentially, and 2% on a year-over-year basis, and that Plug’s inventory levels had further increased to $516 million. On this news, the price of Plug shares declined by $0.20 per share, or approximately 1.35%, from $14.81 per share to close at $14.61 on November 9, 2022.
On January 25, 2023, Defendants reported that the Company now expected 2022 revenue growth of just 45% to 50% year over year—far below both its original projections of approximately 80% growth year over year and the low end of the Company’s updated 60% year-over-year growth range that Defendants reaffirmed less than three months prior. On this news, the price of Plug shares declined by $0.97 per share, or approximately 5.94%, from $16.34 per share to close at $15.37 on January 26, 2023.
On March 1, 2023, Plug announced disappointing financial results for the fourth quarter and full year 2022, including annual revenue of $701.4 million—representing only 40% year-over-year growth and missing even the reduced guidance the Company had recently provided. On this news, the price of Plug shares declined by $0.88 per share, or approximately 6.19%, from $14.21 per share to close at $13.33 on March 2, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company was unable to effectively manage its supply chain and product manufacturing; and (ii) this resulted in reduced revenues and margins, increased inventory levels, and several large deals being delayed until at least 2023.