Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, announces that a securities fraud class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired NET Power Inc. (“Net Power” or the “Company”) (NYSE: NPWR) securities between June 9, 2023 and March 7, 2025, inclusive (the “Class Period”). NET Power investors have until June 17, 2025 to file a lead plaintiff motion.
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What Happened?
On November 14, 2023, before market hours, Net Power released its third quarter 2023 financial results, disclosing that due to “tightness in the global supply chain,” it would be “incorporating a 12-month cushion into [its] expected schedule” for its first utility-scale plant, Project Permian. The Company stated that it was “now expecting to achieve initial power generation sometime between the second half of 2027 and first half of 2028,” compared to the initial schedule of having the plant operational by 2026.
On this news, Net Power’s stock price fell $2.47, or 18.5%, to close at $10.85 per share on November 14, 2023, thereby injuring investors.
Then, on March 10, 2025, Net Power released its fourth quarter and full year 2024 financial results, disclosing the Company had “finalized the Front-End Engineering and Design (FEED) for Project Permian” but the “cost estimate was significantly higher than expected and, as a result, the Company has paused long-lead releases for the project.” Specifically, the Company revealed it is “estimating total installed cost will be $1.7 billion to $2 billion.”
On this news, Net Power’s stock price fell $2.18, or 31.5%, to close at $4.75 per share on March 10, 2025.
Then, on April 15, 2025, Net Power announced that its President and Chief Operating Officer and Chief Financial Officer would depart the Company.
On this news, Net Power’s stock price fell $0.13, or 5.8%, to close at $2.13 per share on April 16, 2025, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Net Power was unlikely to complete Project Permian on schedule, and the project was likely to be significantly more expensive than Defendants had represented, because of, inter alia, supply chain issues and numerous site- and region-specific challenges; (2) accordingly, Defendants’ projections regarding the time and capital needed to complete Project Permian were unrealistic; (3) the increased time and capital needed to complete Project Permian were likely to have a significant negative impact on the Company’s business and financial results; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Net Power securities during the Class Period, you may move the Court no later than June 17, 2025 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: shareholders@glancylaw.com
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250422166984/en/
Contacts
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: shareholders@glancylaw.com
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
