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Eos Energy Enterprises (EOSE) Bridgelink Backlog Case
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D. New JerseyCourt
09 May 2022Class period Start
27 Jul 2023Class period End
30 Sept 2023Lead Plaintiff motion deadline
- Iceberg Research published a report alleging Eos Energy' fake backlog.
- $EOSE fell over 30%, losing over $100M of its market cap.
- Investors suspect EOS of failing to disclose the real financial situation related to Bridgelink.
On July 27, 2023, Iceberg Research published a report titled “62% Of $Eose’s Backlog Is With Financially Distressed Bridgelink Whose Renewable Energy Assets Were Foreclosed And Auctioned Off In May.”
- Iceberg alleged that, while the fate of Eos “rests on its touted 2.2 GWh energy storage system backlog, which EOS valued at $535 million at the end of March 2023,” the backlog “is fake.”
- Iceberg elaborated that “Bridgelink Commodities, accounts for half of EOS’s backlog by MWh or ~62% ($331 million) of its total dollar value” but that Iceberg “decided to dig into this customer’s background and uncovered a group whose assets were recently seized by a creditor and sold in an auction.”
- Iceberg added that “we wonder how EOS can still present Bridgelink as a major client” and that “EOS continues to include Bridgelink in its backlog, and is likely to have made the same representations when applying for the Department of Energy loan.”
- Iceberg concluded that its findings “completely undermine the authenticity of EOS Energy’s promoted backlog.”
On this news, $EOSE fell 23.9%, losing over $100M of its market cap.
Later the same day Eos issued a press release titled “Eos Energy Enterprises Provides Preliminary Results & Issues Statement Regarding Its Customer Commitments and Backlog.”
- Eos stated that “the Company believes that its customer, Bridgelink Commodities, LLC, is a separate legal entity which is not implicated in the legal matters highlighted in today’s statements” and that “this customer, representing 45% of the Company’s backlog, reconfirmed today that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos’s multi-year Master Supply Agreement.”
- Eos also stated that “the Company continues to progress through the Department of Energy Loan Programs Office’s process for its Title XVII loan and is awaiting a conditional approval decision which may be taking longer due to changes from the recent Interim Final Rule announced in May.”
On this news, $EOSE fell another 14.7% the next day, further damaging investors.
Taking all alleged facts and representations, Investors have reasons to suspect EOS of failing to disclose the real financial and business situation related to Bridgelink Commodities.
Failure to Disclose,
Shock Event Date
27 July 2023
01 August 2023
Lead Plaintiff Deadline
30 September 2023
Hon. Julien Xavier Neals