Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against NET Power Inc. (NPWR)

/EIN News/ -- NEW YORK, April 21, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Middle District of North Carolina on behalf of all persons or entities who purchased or otherwise acquired NET Power Inc. (“Net Power” or the “Company”) (NYSE: NPWR) securities between June 9, 2023 and March 7, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for the Company’s investors under the federal securities laws.

The Complaint alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose that: (i) Net Power was unlikely to complete Project Permian on schedule, and the project was likely to be significantly more expensive than Defendants had represented, because of, inter alia, supply chain issues and numerous site- and region-specific challenges; (ii) accordingly, Defendants’ projections regarding the time and capital needed to complete Project Permian were unrealistic; (iii) the increased time and capital needed to complete Project Permian were likely to have a significant negative impact on the Company’s business and financial results; and (iv) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

According to the Complaint, on November 14, 2023, during pre-market hours, Net Power issued a press release announcing its third quarter 2023 results and providing a business update. The Complaint alleges that therein, the Company disclosed that “[d]ue to . . . tightness in the global supply chain, we are incorporating a 12-month cushion into our expected schedule for Project Permian” with Defendants “now expecting to achieve initial power generation sometime between the second half of 2027 and first half of 2028.” The Complaint alleges that this represented a significant delay from Defendants’ initial schedule to have the plant operational by 2026.

The Complaint continues to allege that on this news, Net Power’s stock price fell $2.47 per share, or 18.54%, to close at $10.85 per share on November 14, 2023.

The Complaint further alleges that on March 10, 2025, during pre-market hours, Net Power issued a press release announcing its fourth quarter and full year 2024 results and providing a business update. The Complaint alleges that therein, Net Power disclosed that it “now estimates Project Permian’s total installed cost to be between $1.7 billion and $2.0 billion”—significantly higher than its last estimate of $1.1 billion—“which is inclusive of non-recurring first-of-a-kind, Project Permian site-specific and owner costs[,]” advising that “there are a number of site- and region specific challenges which impact cost.” The Complaint continues to allege that the Company further advised that Project Permian “would come online no earlier than 2029[,]” representing a significant delay from its prior timeline of sometime between the second half of 2027 and first half of 2028. The Complaint further alleges that in addition, Net Power reported that it ended 2024 “with $533 million in cash, cash equivalents, and investments, down from $580 million last quarter, primarily due to $13 million in operating cash outflows and $29 million in capital expenditures for La Porte upgrades and SN1 development.”

According to the Complaint on this news, Net Power’s stock price fell $2.18 per share, or 31.46%, to close at $4.75 per share on March 10, 2025.

Investors who purchased or otherwise acquired shares of Net Power should contact the Firm prior to the June 17, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.