The hydrogen technology firm Plug Power is confronting a growing wave of legal challenges in the United States. Multiple class-action lawsuits allege the company misled shareholders regarding a critical financing issue: the realistic prospects of securing a substantial U.S. government loan.
Core Allegations and Legal Basis
On February 22, 2026, several law firms filed coordinated class actions in the U.S. The suits seek to represent investors who purchased Plug Power securities between January 17, 2025, and November 13, 2025.
The central accusation is that Plug Power issued false or misleading statements concerning the likelihood of obtaining and utilizing a $1.66 billion loan facility from the U.S. Department of Energy (DOE). Furthermore, the litigation challenges the company’s communications about planned new hydrogen production plants, alleging an overly optimistic portrayal of their commercial viability. Legally, the complaints cite purported violations of Sections 10(b) and 20(a) of the Securities Exchange Act.
A Timeline of Declining Shareholder Confidence
The legal filings point to specific stock price declines in late 2025 as reflective of the alleged disclosure failures. The share value dropped significantly on October 7, 2025, following the departure of a senior executive. Further pressure emerged on November 10, 2025, when Plug Power disclosed it had suspended its activities related to the DOE loan program. A detailed media report on November 13, 2025, which elaborated on this suspension, is cited as causing another pronounced downward move in the stock.
Should investors sell immediately? Or is it worth buying Plug Power?
Operational Progress Amid Financial and Legal Strain
Despite these legal headwinds, Plug Power’s underlying financial position remains under scrutiny. The company is unprofitable, operates with very weak margins, and market data suggests a liquidity runway of less than one year. To address its capital structure, shareholders approved a key measure at a reconvened extraordinary general meeting on February 12, 2026: the authorized share count was doubled from 1.5 billion to 3.0 billion.
Operationally, the company has recently reported advancements, including the installation of a 100 MW electrolyzer in Sines, Portugal, and the first 32-ton hydrogen fill for the Hynetwork pipeline in Rotterdam.
The market sentiment is evident in the share performance. Over the past 30 days, the stock has declined by 25.03%, closing at €1.58 on Friday.
Next Steps in the Legal Process
A critical deadline approaches for the consolidated proceedings, which are underway in the U.S. District Court for the Northern District of New York (case number 1:26-cv-00165, among others). Investors seeking to serve as the “Lead Plaintiff” must come forward by April 3, 2026.
Ad
Plug Power Stock: Buy or Sell?! New Plug Power Analysis from February 23 delivers the answer:
The latest Plug Power figures speak for themselves: Urgent action needed for Plug Power investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from February 23.
Plug Power: Buy or sell? Read more here...
