Class Action Filed Against NET Power Inc. for Misleading Investors on Project Permian Delays

Class Action Lawsuit Against NET Power Inc. for Investor Misleading Claims

In a significant development in the realm of shareholder rights, Robbins LLP has announced a class action lawsuit filed against NET Power Inc., a company operating in the clean energy sector. This lawsuit targets all individuals and entities that purchased or acquired NET Power securities between June 9, 2023, and March 7, 2025. The class action centers around allegations of misleading information regarding the company’s Project Permian, which is crucial for its operations.

Allegations Against NET Power

The core of the allegations is that NET Power did not adequately disclose crucial information regarding Project Permian during the class period. According to the complaint, there were three primary failures by the company:

1. Failure to Disclose Delays: NET Power allegedly misrepresented that Project Permian would be completed on time. Contrary to these claims, internal and external challenges indicated that the project would face significant delays.
2. Underestimated Costs: The estimates regarding the costs involved in completing the project were overly optimistic. Robbins LLP claims that the true financial requirements were substantially higher, impacted by factors such as supply chain issues and specific challenges related to the project’s location.
3. Unrealistic Projections: The projections made by NET Power regarding the capital and time needed for the project's completion were deemed unrealistic. This misinformation likely misled investors about the company’s financial health and growth potential.

The Stock Price Dive

The repercussions of these allegations became evident when NET Power announced its third-quarter results on November 14, 2023. The company revealed that due to global supply chain constraints, it would be incorporating additional time into its project timeline. As a result, they pushed back the estimated initial power generation from the second half of 2027 to the first half of 2028. This news triggered a dramatic drop in the company’s stock, which plummeted over 18%, closing at $10.85 per share.

Following this, on March 10, 2025, NET Power released its fourth-quarter and full-year results for 2024, further disclosing that the project's total estimated cost would balloon to between $1.7 billion and $2.0 billion, a significant increase from the previously stated $1.1 billion. This additional information included context regarding site-specific challenges. As a consequence, the company’s stock again faced a severe decline, falling over 31% to close at $4.75 per share.

Next Steps for Stakeholders

For investors who believe they may be eligible to participate in the class action against NET Power, the timeline is critical. Those interested in serving as lead plaintiffs must file their papers with the court by June 17, 2025. It is essential to note that individuals do not need to actively participate in the case to be eligible for any potential recovery; they may choose to remain as absent class members.

Robbins LLP, known for its leadership in shareholder rights litigation, confirms that representation in this case is on a contingency fee basis. This means shareholders will incur no fees or expenses unless the case is successful.

About Robbins LLP

Founded in 2002, Robbins LLP has made a name for itself as a champion of shareholder rights, helping investors recover their losses and holding corporate executives accountable. Their commitment to ensuring corporate governance and transparency is at the forefront of their mission.

For more information and updates regarding the NET Power class action lawsuit or to learn how to get involved, stakeholders can reach out to Robbins LLP directly. This class action serves as a reminder of the importance of accountability in the financial markets and the vigilance of shareholders in protecting their investments.