#United States #New York #Securities Law #Faruqi & Faruqi #NET Power

Faruqi & Faruqi, LLP Undertakes Investigation for NET Power Investors

Faruqi & Faruqi, LLP, a well-respected national securities law firm, has launched an investigation concerning potential claims by investors in NET Power Inc. (NYSE: NPWR). The firm is advising those who acquired securities in NET Power between June 9, 2023, and March 7, 2025, to evaluate their legal rights, especially with an approaching lead plaintiff deadline on June 17, 2025. This marks significant engagement following alarming revelations that have surfaced regarding NET Power’s management and operational projections.

The inquiry focuses on allegations that NET Power and its executives violated federal securities laws. Specifically, they are accused of providing a misleading narrative about their flagship initiative, Project Permian, which has faced notable delays and soaring costs. Reports indicate that the project was unlikely to commence as scheduled due to extensive supply chain disruptions and regional challenges that had not been adequately disclosed to investors.

In a troubling turn of events, on November 14, 2023, NET Power issued a press release revealing that it would be delaying the project timeline by at least one year, pushing initial power generation to late 2027 or early 2028—moving from an earlier goal of 2026. This announcement triggered a sharp decline in the company's stock price, dropping by 18.54% following the news.

As the investigation deepens, it also came to light that updated financial estimates raise the total installation cost for Project Permian to between $1.7 billion and $2 billion, far surpassing previous forecasts of $1.1 billion. Such revelations significantly impacted investor confidence, leading to a further drop of 31.46% in the stock price by March 10, 2025, following a similarly bleak announcement concerning the project’s delay to no earlier than 2029.

These critical developments raise questions about the integrity of NET Power's previous disclosures and the management's commitment to transparency. With further instability marked by executive departures, including the significant exit of the company's President and COO just two days after the disappointing financial updates, investors are understandably anxious about the future of their investments.

Faruqi & Faruqi has been advocating for investors' rights since its inception in 1995 and has successfully recovered hundreds of millions of dollars for clients. They emphasize the urgency for affected shareholders to seek legal advice and potentially take action as a collective class, as notifications regarding participation in the class action are being disseminated.

Members of the potential class, including whistleblowers and former employees, are encouraged to come forward with any information relevant to NET Power’s claims or practices. For investors eager to take up a robust response, they can reach out directly to Faruqi & Faruqi’s representative, Josh Wilson, to discuss their specific circumstances and options via phone or through the firm’s website.

In the ever-evolving landscape of corporate accountability, this investigation stands as a reminder of the necessity for vigilance among investors. The class action litigation might not only provide a path to compensation for aggrieved stakeholders but also holds the potential to fortify compliance and governance standards in the energy sector. As this situation unfolds, Faruqi & Faruqi will continue to monitor developments closely, ensuring that the interests of investors are diligently represented and safeguarded.