March 08, 2021 - An investor in shares of Plug Power Inc. (NASDAQ: PLUG) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Plug Power Inc. in connection with certain allegedly false and misleading statements made between November 9, 2020 and March 1, 2021.
Lahtam, NY based Plug Power Inc. provides hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe. Plug Power Inc. reported that its annual Total Revenue rose from $174.63 million in 2018 to $230.23 million in 2019, and that its Net Loss increased from $78.11 million in 2018 to $85.46 million in 2019.
On March 2, 2021, Plug Power Inc. filed a Notification of Late Filing with the Securities and Exchange Commission (“SEC”) stating that it could not timely file its annual report for the period ended December 31, 2020 because the Company was completing a “review and assessment of the treatment of certain costs with regards to classification between Research and Development versus Costs of Goods Sold, the recoverability of right of use assets associated with certain leases, and certain internal controls over these and other areas.” The Company stated that “[i]t is possible that one or more of these items may result in charges or adjustments to current and/or prior period financial statements.” Shares of Plug Power Inc. (NASDAQ: PLUG) declined from $75.49 per share in January 2021 to as low as $33.26 per share on March 5, 2021. According to the complaint the plaintiff alleges on behalf of purchasers of Plug Power Inc. (NASDAQ: PLUG) common shares between November 9, 2020 and March 1, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between November 9, 2020 and March 1, 2021, the defendants failed to disclose to investors that the Company would be unable to timely file its 2020 annual report due to delays related to the review of classification of certain costs and the recoverability of the right to use assets with certain leases, that the Company was reasonably likely to report material weaknesses in its internal control over financial reporting, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.