Pomerantz Law Firm Initiates Class Action Against NET Power Inc. and Executives Amid Securities Violations

Overview of the Class Action Against NET Power Inc.

Pomerantz Law Firm has announced the initiation of a class action lawsuit against NET Power Inc., trading under the ticker NPWR, and certain of its senior executives. The action, which has been filed in the United States District Court for the Middle District of North Carolina, encompasses all individuals and entities, exclusive of the defendants, who purchased NET Power securities during a specific period from June 9, 2023, to March 7, 2025. The lawsuit is anchored on allegations of significant breaches of federal securities laws by the company and its leadership, compelling the plaintiffs to seek remedy and recover damages under the Securities Exchange Act of 1934.

The Allegations

The crux of the allegations suggests that during the said time frame, the defendants perpetuated a series of materially false and misleading statements regarding the operations and business prospects of NET Power, particularly concerning its flagship Project Permian. This ambitious initiative aims to develop a utility-scale power generation facility, leveraging innovative technologies to produce clean energy from natural gas while minimizing emissions.

Prior to the events defining the class period, the defendants had projected the operational commencement of Project Permian by 2026. However, the landscape shifted dramatically amid rising costs and complications arising from supply chain disruptions and various site-specific obstacles. Initial cost estimations for this significant project surged from around $950 million to between $1.7 billion and $2.0 billion, with operational timelines extending beyond the initially expected 2026 to a potentially delayed opening no earlier than 2029.

Investors were misled over the feasibility of the project's timelines, leading to significant financial consequences for those who acted based on the false assurances of company officials. Immediate impacts on stock prices were seen following key announcements, including a notable drop of over 18% after the delay was publicly disclosed on November 14, 2023.

Key Events Leading to the Class Action

On November 14, 2023, amidst growing concerns regarding Project Permian's progress, NET Power provided a sobering business update, revealing a twelve-month delay and revised cost estimates that raised eyebrows among stakeholders. This announcement not only triggered a notable drop in share prices but also widened the scrutiny on NET Power's leadership. Further strain on investor confidence was visible during another disclosure on March 10, 2025, when the company revealed yet another recalibration in cost assessments, along with the announcement that operational timelines had extended further into the future.

Additionally, significant leadership changes at NET Power—specifically the departure of its President and Chief Operating Officer—further unsettled investors, leading to additional declines at the stock market. Such series of unsettling events have culminated in the formulation of the class action by Pomerantz LLP, reflecting the firm's commitment to advocating for investors adversely affected by corporate negligence and misleading practices.

Next Steps for Interested Investors

For investors who purchased NET Power securities during the specified class period and seek to join the lawsuit, the deadline to apply for Lead Plaintiff status is June 17, 2025. Interested parties can find more details and a full copy of the filed complaint on Pomerantz LLP’s official website, www.pomerantzlaw.com. The firm is actively encouraging potential class members to reach out to its representatives to discuss their rights and the potential for collective legal action against NET Power and its executives.

Conclusion

Pomerantz LLP stands as a pioneer in securities class action lawsuits, known for its rigorous advocacy and recovery of significant damages on behalf of its clients. With its headquarters spanning major cities like New York, Chicago, and London, the firm continues to uphold a steadfast commitment to fighting for investor rights and holding corporations accountable for misconduct. The ongoing case against NET Power Inc. underscores the importance of corporate transparency and the responsibility companies hold towards their investors. As developments unfold, astute attention should be paid to the implications this lawsuit may have on the energy sector and investor confidence moving forward.