#United States #New York #Class Action #Pomerantz Law Firm #NET Power Inc.

Class Action Filed Against NET Power Inc.

In a significant legal move, Pomerantz LLP has initiated a class action lawsuit against NET Power Inc. and certain affiliated executives. This legal action, documented under docket number 25-cv-00296, is filed in the U.S. District Court for the Middle District of North Carolina. The lawsuit represents a group of investors who purchased NET Power securities between June 9, 2023, and March 7, 2025. Their aim is to recover damages tied to allegations of violations of federal securities laws.

Details of the Class Action

The lawsuit targets core allegations against NET Power, particularly its false and misleading statements regarding its business operations and project timelines. Specifically, the class action alleges that:

• - NET Power was unlikely to meet the operational timeline for its flagship project, Project Permian, originally expected to commence operations in 2026.
• - Increased costs estimates for completions, projected to rise from $950 million to as much as $2 billion.
• - Significant delays experienced in the project due to supply chain issues and other logistical challenges.

>>> Important: Investors who acquired NET Power securities during the Class Period have until June 17, 2025, to petition the Court to be appointed as Lead Plaintiff.

Company Overview

NET Power is recognized as an innovator in clean energy technology, primarily focusing on its proprietary Net Power Cycle system designed to generate affordable electricity from natural gas while virtually eliminating emissions. The company operates a demonstration facility in La Porte, Texas, where it tests its technology in real-world conditions. This facility plays a crucial role in developing its utility-scale project, Project Permian, located in the Permian Basin of West Texas.

The project's financial and operational outlook is pivotal not only for NET Power but also for the broader renewable energy sector, emphasizing its commitment to sustainable energy solutions.

Recent Developments and Investor Impact

On November 14, 2023, following a quarterly earnings announcement, NET Power disclosed a troubling delay in the Project Permian timeline, pushing the expected operational date to between 2027 and 2028. This announcement led to an 18.54% drop in the company's stock price, indicating how investor confidence oscillates with the company's operational forecasts. By March 10, 2025, a further announcement regarding increased cost estimates caused a staggering 31.46% decline in its stock price, highlighting mounting financial concerns and uncertainties.

Leadership Changes

Adding to investors' unease, April 15, 2025, marked the announcement of leadership transitions within the company, including the exit of both its President and Chief Operating Officer, further triggering a decline in stock value. Such executive changes often indicate deeper organizational issues, which may intensify scrutiny over the company’s strategic direction.

Call to Action for Investors

For those affected by the fluctuations in NET Power’s stock due to these setbacks, reaching out to Pomerantz LLP may provide options for pursuing compensation. Interested investors are encouraged to secure their standing as lead plaintiffs in the class action before the June 17 deadline and can obtain more details through official channels.

Pomerantz LLP remains a strong advocate for investors navigating the complexities of corporate securities and emphasizes the importance of transparency in business practices.