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PLUG.US
id: 662

Plug Power (PLUG) Misleading Case

Delaware court of Chancery
Court
09 Aug 2022
Class period Start
01 Mar 2023
Class period End
12 Jun 2023
Lead Plaintiff motion deadline
  • Plug reported full-year revenue missing the reduced guidance provided just a few weeks earlier.
  • $PLUG price declined 6%, injuring investors.
  • Investors suspect $PLUG & its Leaders of misleading.
On March 1, 2023, Plug reported full-year revenue growth of just 40% on a year-over-year basis—missing even the reduced guidance range provided just a few weeks prior.

On this news, the $PLUG price declined 6%, injuring investors.

It was not the first time when Plug's results did not meet its own guidance.
  • On August 9, 2022, Plug announced its financial results for Q2 2022, assuring investors that the company had a “Strong Business Outlook” touting a $15 billion sales funnel and emphasizing that Plug’s supply chain was strong—with its CEO stating that he did “not foresee supply chain issues this year”—and that Plug’s rapidly growing inventory was simply attributable to the substantial growth Plug would experience in the second half of 2022. Consistent with these representations, the Leaders projected that Plug would generate 2022 revenue between $900 million and $925 million.
  • A few months later, however, on October 14, 2022, Plug warned that full-year revenue could be 5% to 10% lower than previously projected and attributed the revenue revision 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 common stock declined by 6%.
  • Three weeks later, on November 8, 2022, Plug reported its financial results for Q3 2022, reporting a decrease in gross margins and a further increase in inventory levels. On this news, the price of Plug declined by 1%.
  • On January 25, 2023, despite previous assurances that revenue growth would be at least 60% on a year-over-year basis, Plug revealed that it is now expected to generate year-over-year revenue growth of just 45% to 50% in 2022 and explained that this disappointing result “had to do with the fact that the new products came out a little slower than we hoped,” as Plug’s “manufacturing had a few more issues than we hoped” and “added . . . complexity to the supply chain.” Following this revelation, the price of Plug declined by 6%.
Taking all representations and consequent facts into account, Investors have reasons to suspect $PLUG and its Leaders of multiple misleading statements which led to investment damages to shareholders.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
01 March 2023
Filing date
11 April 2023
Lead Plaintiff Deadline
12 June 2023
Collecting participants…

Plug Power Inc

Plug Power Inc. develops hydrogen and fuel cell product solutions in North America, Europe, Asia, and internationally. The company offers GenDrive, a hydrogen-fueled proton exchange membrane (PEM) ...

    Ticker
    PLUG.US
    ISIN
    US72919P2020
    CIK
    1093691
    Sector
    Industrials
    Industry
    Electrical Equipment & Parts
    Country
    USA
    Address
    968 Albany Shaker Road, Latham, NY, United States, 12110