Securities Fraud Lawsuit Targets Plug Power Over Disputed $1.66 Billion DOE Loan Guarantee

Feb 25, 2026 (20 hr ago)

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A class action lawsuit alleges securities fraud regarding the $1.66B DOE loan, coinciding with the suspension of related program activities.

Legal Action and DOE Loan Uncertainty

PLUG faces a securities fraud class action lawsuit tied to its $1.66B U.S. Department of Energy (DOE) loan guarantee announcement5
The suit alleges the company materially overstated the likelihood that DOE loan funds would ultimately become available to the company5
Activities under the DOE loan program have been suspended, putting planned construction of zero/low-carbon hydrogen facilities at risk5
The abrupt departure of the company's CEO and President occurred amidst these developments5

Shareholders approved a significant increase in authorized common shares, providing flexibility to raise capital for hydrogen projects4
This share expansion allows the company to pursue funding without implementing a previously considered reverse stock split4
Management will need to explain funding options, strategic pivots, and the impact of DOE loan questions in upcoming disclosures3
The company maintains plans to build and operate green hydrogen highways across North America and Europe4

A Discounted Cash Flow model suggests the stock trades at a 71.9% discount to an intrinsic value of approximately $6.55 per share1
The company's P/S ratio of 3.74x is notably above the Electrical industry average of 2.46x1
Analysts project Plug Power will move from losses in 2026 and 2027 into positive free cash flow generation by 20282
Projected free cash flow for the year 2030 is estimated to reach $466.7 million2