Plug Power Inc. (PLUG) Officers and Directors Investigated for Possible Misrepresentations and Insider Trading
SAN FRANCISCO, September 13, 2022 /PRNewswire/ — Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Plug Power Inc. (NASDAQ: PLUG) regarding possible false and misleading statements to investors and material insider trading by several executives and administrators.
Plug Power and its CEO and CFO, André Marais and Paul Middletonare currently the subject of a consolidated securities class action lawsuit in the United States District Court for the Southern District of New York alleging that he made false and misleading statements to investors regarding the profitability of the company’s hydrogen fuel cell business. Specifically, among other things, the company and its executives allegedly implemented a long-running scheme to misclassify the cost of liquid hydrogen delivered to customers, thereby inflating the perceived profitability of Plug Power’s core business. On May 14, 2021, the company has restated several financial statements from prior periods from 2018 to the third quarter of 2020 to correct the classification error. At the same time, Plug Power also revealed a significant weakness in internal controls and announced that the company’s improper accounting practices, allegedly uncovered by a new auditor, dated back to 2016.
Shortly before the restatements, Mr. Marsh and Mr. Middleton sold approximately $45 million of their personal holdings of Plug Power stock alongside several other high-level insiders, including at least six directors and the company’s chief legal officer and chief operating officer. The company also completed two lucrative secondary offerings in November 2020 and February 2021together totaling approximately $3 billion additional capital based on these allegedly false and misleading statements.
Schubert is investigating potential breaches of fiduciary duty by Plug Power’s officers and directors in connection with these allegations.
About Schubert Jonckheer & Kolbe LLP
Schubert Jonckheer & Kolbe represents shareholders, employees and consumers in class actions against corporate defendants, as well as shareholders in derivative actions against their officers and directors. The company is based in San Franciscoand with the assistance of co-counsel, litigates cases nationwide.
Amber L. Schubert
Schubert Jonckheer & Kolbe LLP
SOURCE: Schubert Jonckheer & Kolbe LLP
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