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

Feb 24, 2026 (20 hr ago)
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Securities Fraud Lawsuit Targets Plug Power Over Disputed $1.66B DOE Loan Guarantee
Plug Power faces a securities fraud class action alleging misrepresentation regarding a critical $1.66 billion Department of Energy loan guarantee.

DOE Loan Guarantee Litigation Crisis

  • A class action lawsuit alleges securities fraud related to the $1.66 billion DOE loan guarantee announcement5
  • The suit claims Plug Power materially overstated the certainty that DOE loan funds would become available for facility construction5
  • Activities under the DOE loan program have been suspended, jeopardizing plans for six planned hydrogen production facilities2, 5

Corporate Governance and Management Changes

  • The company experienced the abrupt departure of its CEO and President following related developments concerning the loan program5
  • Management must address funding options, the business pivot, and fallout from the DOE loan questions in upcoming disclosures2

Financing Flexibility and Balance Sheet Actions

  • PLUG expanded its authorized shares, providing greater flexibility to raise capital or restructure its balance sheet2
  • This share expansion introduces uncertainty regarding potential dilution alongside ongoing legal and reputational costs2

Upcoming Financial Reporting Context

  • The company is scheduled to report Q4 2025 results on March 2, 20263, 4
  • Q4 revenue is projected at $220.68 million, marking a 15.3% year-over-year increase1, 3
  • Expected quarterly loss is $0.10 per share, representing a 93.9% year-over-year improvement in loss magnitude1, 3

Operational Footprint and Client Base

  • PLUG operates an integrated hydrogen ecosystem, deploying over 72,000 fuel cell systems and 285 fueling stations globally4
  • Operational hydrogen plants in Georgia, Tennessee, and Louisiana currently produce 40 tons of hydrogen daily4
  • Major clients utilizing PLUG's hydrogen solutions include Walmart, Amazon, and BMW4
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Securities Fraud Lawsuit Targets Plug Power Over Disputed $1.66B DOE Loan Guarantee | Foxly Invest