Plug Power Faces Securities Investigation Amid Project Delays

The U.S. hydrogen technology firm Plug Power is now the subject of a formal securities investigation. Pomerantz LLP, a law firm specializing in shareholder rights, announced on December 14 that it is examining potential securities law violations by the company. This probe adds another layer of complexity for the already struggling clean energy stock.

The company's operational challenges are underscored by its latest financial results. For the third quarter of 2025, Plug Power reported revenue of $177 million alongside a substantial net loss of $363.5 million. While the firm's operational cash burn showed improvement, declining by 49% year-over-year to approximately $90 million, a clear path to profitability remains elusive. Management has set a target to achieve positive EBITDAS by the end of 2026.

In a move to bolster its financial position, the company completed a capital raise in November, netting $399 million. Furthermore, investment firm Manatuck Hill Partners demonstrated confidence by expanding its stake through the purchase of 2.5 million shares. Shareholders are scheduled to vote on a proposal to double the company's authorized common stock from 1.5 billion to 3.0 billion shares at an extraordinary general meeting on January 15.

Catalyst for Legal Scrutiny

The investigation was triggered by a November 13 report from the Washington Examiner, which revealed that Plug Power had suspended construction on six hydrogen production facilities. These plants were designed to produce and liquefy low-carbon hydrogen. This development carries significant financial implications, as the company had secured a $1.66 billion loan guarantee from the U.S. government in January for such projects. The suspension now places that crucial government backing in jeopardy.

Should investors sell immediately? Or is it worth buying Plug Power?

Legal representatives are investigating whether the company and certain of its officers engaged in securities law violations or other unlawful business practices related to these events.

Market Reaction and Contract Wins

The market responded decisively to the news of the project suspensions. Over two consecutive trading days following the report, Plug Power's share price fell by 17.6%, closing at $2.25 on November 14. The stock currently trades at €1.98.

Despite the legal overhang and operational pressures, Plug Power has recently announced several new contracts. In a landmark deal, the company will supply liquid hydrogen to NASA for the first time under a contract worth up to $2.8 million for 218,000 kilograms. In Europe, it signed a letter of intent with Hy2gen for a 5-megawatt electrolyzer in France. The company also secured three projects in the United Kingdom with a combined capacity of 55 megawatts.

Analyst price targets for the stock reflect a wide range of expectations, from a low of $0.75 to a high of $7.00 per share, with the average target sitting at $2.79. The ongoing legal examination is likely to contribute to near-term investor uncertainty.