Overview

A class action lawsuit has been filed against Plug Power, Inc. (“Plug” or the “Company”) (NASDAQ: PLUG) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934.  The Plug lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired Plug securities between May 9, 2023 and January 16, 2024, both dates inclusive (the “Class Period”), and investors have until May 21, 2024 to seek appointment as lead plaintiff of the Plug class action lawsuit.

Plug provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe, focusing on proton exchange membrane fuel cell and fuel processing technologies, fuel cell-battery hybrid technologies, and related hydrogen storage and dispensing infrastructure.  Plug offers its products to retail-distribution and manufacturing businesses through a direct product sales force, original equipment manufacturers, and dealer networks.  Integral to Plug’s business are the green hydrogen production plants that the Company operates in multiple locations throughout the United States and Europe.  These plants are at various stages of development, from operational to under construction.  Plug’s strategy to maintain growth and profitability involves expanding production capabilities at the Company’s already completed green hydrogen plants while finishing construction of new plants.

The Company has struggled to execute these hydrogen plant build-out and construction efforts on budget and on time and, as a result, is frequently tasked with identifying additional sources of capital to fund its operations.  Despite the foregoing issues, Defendants assured investors throughout the Class Period that Plug was on a clear path to long-term growth and profitability, that the build-out and construction of its green hydrogen production plants remained on track, and that the Company had identified multiple opportunities to continue to fund its operations.  Relatedly, Defendants assured investors that Plug had enacted a diversification strategy to mitigate the potential negative impacts that, inter alia, supply chain constraints and material shortages could have or were having on the Company’s business.

The lawsuit alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose 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, the Company’s public statements were materially false and misleading at all relevant times.

On November 9, 2023, Plug announced its third quarter 2023 results, including a third quarter GAAP earnings-per-share of -$0.47, missing consensus estimates by $0.16, and third quarter revenue of $198.71 million, missing consensus estimates by $23.02 million.  In discussing these results, Plug disclosed that its 2023 overall financial performance has been negatively impacted by unprecedented supply challenges in the hydrogen network in North America, including, inter alia, severe hydrogen shortages, prompting multiple analyst downgrades.  On this news, Plug’s stock price fell $2.40 per share, or 40.47%, to close at $3.53 per share on November 10, 2023.

On November 16, 2023, Citi downgraded Plug’s stock from a “Buy” to a “Neutral” rating, as well as slashed its price target on the stock from $12.50 to $5.00, noting, among other things, that Plug management’s subpar execution has led the Company into liquidity challenges and, accordingly, Plug will require $500 million of cash over the next six months.  On this news, Plug’s stock price fell $0.17 per share, or 3.91%, to close at $4.18 per share on November 16, 2023.

On December 6, 2023, Morgan Stanley downgraded Plug’s stock from an “Equal Weight” to an “Underweight” rating, as well as slashed its price target on the stock from $3.50 to $3.00, citing liquidity concerns and worsening hydrogen economics.  On this news, Plug’s stock price fell $0.25 per share, or 5.9%, to close at $3.99 per share on December 6, 2023.

On January 11, 2024, Susquehanna downgraded Plug’s stock from a “Positive” to a “Neutral” rating, as well as cut its price target on the stock from $5.50 to $4.00, citing delays related to both Plug’s green hydrogen production facility build-out and securing external funding sources to finance its growth plans.  On this news, Plug’s stock price fell $0.32 per share, or 7.92%, to close at $3.72 per share on January 11, 2024.

On January 16, 2024, Plug announced that it would provide its annual business update on January 23, 2024.  Then, on January 17, 2024, Seeking Alpha reported that the market appears to have reset expectations ahead of Plug’s planned January 23 business update with Chief Executive Officer Andy Marsh and Chief Financial Officer Paul Middleton.  For example, Seeking Alpha noted that Morgan Stanley analyst Andrew Percoco maintained his Underweight rating and $3 price target, anticipating a downside to Plug’s $2.1 billion revenue and 25% gross margin guidance for fiscal year 2024 announced during its fourth fiscal quarter earnings call; that the analyst thinks further delays at Plug’s green hydrogen production facility in Georgia could be announced, which would add to pressure on the growth and profitability profile of the Company’s green hydrogen business model; and that the analyst also pointed to an increasing probability that Plug will need to raise $1-$1.5 billion 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 per share, or 9.87%, to close at $2.74 per share on January 17, 2024.

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If you purchased or otherwise acquired Plug securities between May 9, 2023 and January 16, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Plug lawsuit is May 21, 2024.