Pomerantz Law Firm Initiates Class Action Against NET Power Inc.: Legal Implications for Investors

Class Action Lawsuit Against NET Power Inc. by Pomerantz Law Firm

In a significant legal development for investors, the Pomerantz Law Firm has announced the initiation of a class action lawsuit against NET Power Inc. (NYSE: NPWR). This lawsuit, filed in the United States District Court for the Middle District of North Carolina, specifically addresses the grievances of individuals and entities who purchased or acquired NET Power securities between June 9, 2023, and March 7, 2025. The action is noted under docket number 25-cv-00296, and it aims to seek restitution for damages resulting from violations of federal securities laws.

Background of NET Power Inc.

NET Power is recognized as a prominent player in the realm of clean energy technology, primarily focusing on its innovative "Net Power Cycle". This technology is touted as a groundbreaking method for generating reliable and cost-effective electricity from natural gas while capturing nearly all atmospheric emissions. The company operates a facility in La Porte, Texas, which serves as a demonstration plant for validating the viability of this revolutionary energy generation system.

Currently, NET Power is engaged in developing its first utility-scale plant, commonly referred to as either "SN1" or "Project Permian". This ambitious project is based in West Texas's Permian Basin. Since the beginning of the Class Period, previous statements from the company indicated expectations for SN1 to commence operations by 2026. However, developing the project has not come without challenges, as estimates for construction costs have substantially increased over time—from an initial $950 million in 2023 to $1.1 billion in 2024.

Allegations Against NET Power Company

The crux of the class action lawsuit lies in accusations against NET Power and its executives of making materially false and misleading claims regarding the company’s corporate prospects. More specifically, the lawsuit contends that NET Power was unlikely to meet its projected timeline for Project Permian and that escalating costs would negatively impact the overall business outlook. The core allegations highlight important details:

1. Delayed Completion: Defendants allegedly misrepresented that Project Permian would be completed as scheduled, despite knowing of numerous site-specific challenges and supply chain issues that could impact timelines and costs.
2. Underestimated Costs: The lawsuit claims that the true costs required for the completion of Project Permian were significantly higher than represented, which ultimately would have detrimental effects on the financial status of NET Power.
3. Misleading Public Statements: Continuous public announcements by the defendants throughout the Class Period allegedly contradicted the realities of the project’s progress and the company's situation, misleading investors.

The situation escalated on November 14, 2023, when NET Power revealed a substantial delay in the operational schedule, shifting initial power generation expectations to between the second half of 2027 and the first half of 2028, which dropped the stock price dramatically, falling 18.54% to close at $10.85 per share. Later updates revealed further cost increases, and another decline came following the announcement of several key executive departures.

Conclusion

For those who hold or held NET Power securities during the specified period, Pomerantz Law Firm is providing an opportunity to seek justice through this class action lawsuit. Interested parties have until June 17, 2025, to request to be appointed as Lead Plaintiff for the class. For detailed information, including access to the complaint and how to participate, affected investors can visit Pomerantz Law Firm's website or contact Danielle Peyton at the firm directly.

Pomerantz LLP is a well-regarded law firm known for its strong track record in corporate and securities litigation, defending the rights of shareholders and stakeholders in matters of financial misconduct. As the legal battle unfolds, it serves as a somber reminder of the importance of transparency in corporate communications and the need for due diligence by investors.

Contact Information

For further inquiries, reach out to Danielle Peyton of Pomerantz LLP via email at [email protected] or by phone at 646-581-9980 (toll-free: 888-POMLAW, Ext. 7980). Affected investors are encouraged to share their contact details and the number of shares involved in potential claims.