Investors on Alert: Faruqi & Faruqi's Investigation into NET Power
The prominent national securities law firm, Faruqi & Faruqi, LLP, has announced its investigation into potential claims on behalf of investors in NET Power Inc. (NYSE: NPWR). This inquiry is particularly significant for individuals who acquired securities in the company between June 9, 2023, and March 7, 2025, as they may have experienced substantial financial losses related to misleading statements made by company executives.
Context of the Investigation
Faruqi & Faruqi's investigation highlights serious allegations that NET Power, and its higher authorities, may have violated federal securities laws. The complaint filed against the company asserts several critical points:
- - Delays and Cost Increases: Key to the accusations is the claim that NET Power is unlikely to finish its Project Permian on the initially promised timeline. The project is anticipated to exceed previous budget estimates due to supply chain issues and other unforeseen regional challenges.
- - Unrealistic Projections: Allegations also state that NET Power's stated timelines and capital requirements were unrealistic and failed to account for the complexities involved in the project’s execution.
- - Impact on Financial Performance: The increased time and capital outlay required for Project Permian are expected to adversely affect NET Power's overall business health and financial outcomes.
Timeline of Events
Several key announcements connected to NET Power have led to its inquiry:
1.
November 14, 2023: NET Power released its third quarter results, indicating significant delays, shifting the initial power generation timeline from 2026 to between 2027 and 2028. Following this announcement, the company's stock plummeted $2.47, marking an 18.54% drop.
2.
March 10, 2025: In a subsequent update, the company reported the total project costs escalating significantly from $1.1 billion to between $1.7 billion and $2.0 billion. The projected operational start date was pushed back to no earlier than 2029, inducing a further decline in stock price by 31.46% — a drop of $2.18.
3.
April 15, 2025: A change in executive leadership announced a departure of key company officers, leading to an additional downturn in stock to $2.13 per share.
Legal Options Available to Investors
Faruqi & Faruqi is encouraging investors who may have suffered losses due to these revelations to explore their legal rights and potential compensation. The firm outlines an essential deadline: any investor wishing to take on the role of lead plaintiff in the class action must act by June 17, 2025. This role is significant, as the lead plaintiff will guide the case on behalf of all affected investors.
It is worth noting that being a lead plaintiff does not influence one's ability to secure a portion of any eventual recovery from a legal settlement. Investors with additional insights regarding NET Power or who experienced adverse impacts are particularly urged to reach out to Faruqi & Faruqi.
How to Proceed
For those interested in discussing their experiences with NET Power, Faruqi & Faruqi's partner, Josh Wilson, is available for direct communication via phone at 877-247-4292 or through the firm's website
www.faruqilaw.com/NPWR. Additionally, the firm continues to urge whistleblowers, past employees, and shareholders to contribute pertinent information that could assist in this matter.
Conclusion
In summary, the investigation by Faruqi & Faruqi is a critical reminder for investors to remain vigilant about the companies in which they invest. As NET Power faces legal scrutiny, those affected by the concerning developments should consider their legal options carefully as they navigate this complex situation.