Pomerantz Law Firm Files Class Action Against NET Power Inc. Over Securities Violations

Class Action Lawsuit Filed Against NET Power Inc.

On May 26, 2025, Pomerantz LLP announced a class action lawsuit against NET Power Inc. (NYSE: NPWR) and several of its officers, as reported in their press release. This legal action, lodged in the U.S. District Court for the Middle District of North Carolina, aims to represent individuals and entities that acquired NET Power securities between June 9, 2023, and March 7, 2025—a timeframe referred to as the "Class Period."

The lawsuit was initiated under the accusation that NET Power and its key executives violated federal securities laws. Specifically, it targets sections of the Securities Exchange Act of 1934, namely Sections 10(b) and 20(a), along with Rule 10b-5. Such actions came in response to claims that the company made materially misleading statements about its business operations, future projects, and financial outlook, particularly regarding Project Permian—a critical initiative for their portfolio.

Background of NET Power

NET Power is a technology enterprise engaged in developing clean energy solutions through its Net Power Cycle technology, which aims to generate electricity from natural gas while capturing nearly all carbon emissions. The company has a demonstration facility in La Porte, Texas, which serves as a testing ground for their innovative technology that many investors consider pivotal to the future of clean energy.

The company is also focused on Project Permian, positioned in West Texas's Permian Basin. Historically, NET Power projected that this project would be operational by 2026, with initial cost estimates around $950 million; however, these figures were rapidly evolving.

Allegations in the Class Action

Investors have raised concerns that throughout the Class Period, NET Power’s management provided optimistic assessments which failed to align with the reality of the project’s progress. Specifically, the lawsuit claims that they did not disclose critical information about potential delays and increasing costs due to various challenges, which could significantly impact the company's financial health.

Pomerantz LLP, a firm well-known for representing victims of securities fraud, is urging any investors who purchased NET Power securities during the Class Period to reach out if they wish to be appointed as Lead Plaintiff. Interested parties must act promptly, as the deadline to file is June 17, 2025.

Recent Developments

There have been significant recent updates regarding NET Power's business trajectory. In November 2023, the company revealed a necessary delay in Project Permian's schedule, pushing completion from 2026 to around 2027-2028 due to global supply chain issues. After this announcement, the stock price of NET Power saw a drastic drop of over 18%.

In March 2025, NET Power issued yet another disheartening update, indicating that the total project costs had soared to between $1.7 billion and $2 billion, a stark contrast to earlier assessments. On the heels of this press release, the stock suffered an even steeper decline of 31.46%, plummeting its value significantly.

Furthermore, the departure of key executives was announced in April 2025, adding to the uncertainty surrounding company's leadership and future plans.

About Pomerantz LLP

With over 85 years of experience, Pomerantz LLP stands as a formidable player in the realm of class action litigation, particularly in corporate governance and securities fraud cases. The firm's legacy was established by Abraham L. Pomerantz, often lauded for pioneering the field of securities class actions. Today, they continue to advocate for shareholders and fight against corporate malfeasance, having recovered billions in damages for class members nationwide.

Investors who feel impacted by NET Power’s actions are encouraged to check www.pomerantzlaw.com for updates and guidance on participating in this class action campaign.

For more detailed discussions or inquiries, individuals can reach out to Danielle Peyton at Pomerantz LLP. Contact details include an email at [email protected] or calling at 646-581-9980. It is recommended that inquiries include personal contact information and specifics of shares owned for efficient processing.