The $100,000 Threshold: How NPWR Investors Can Lead the Charge in a Landmark Securities Fraud Lawsuit

Investors in NET Power Inc. (NYSE: NPWR) holding losses of at least $100,000 now have a pivotal opportunity to shape the outcome of a high-stakes securities fraud lawsuit. The Schall Law Firm and Pomerantz LLP are leading class actions against the company, alleging it misled investors about the viability of its flagship Project Permian clean energy plant. With a June 17, 2025, deadline to seek lead plaintiff status, the case hinges on demonstrating material harm caused by the company’s alleged misstatements.

The Project Permian Debacle

NET Power’s Project Permian, a $1.7–$2.0 billion utility-scale clean energy plant in Texas’s Permian Basin, became the focal point of the lawsuit. Initially touted as operational by 2026 with a $950 million budget, the project’s timeline and costs spiraled out of control. By March 2025, delays pushed completion to no earlier than 2029, and cost overruns nearly doubled the original estimate. These revelations triggered catastrophic stock price declines: an 18.5% drop in November 2023 and a 31.5% plunge in March 2025.

This data visualization would highlight the stock’s nosedive, aligning with the timeline of Project Permian’s disclosed setbacks.

The Legal Case: Misstatements and Market Manipulation

The lawsuits argue that NET Power made materially false and misleading statements to investors during the class period (June 9, 2023–March 7, 2025). Key allegations include:
1. Downplaying Supply Chain and Site Challenges: Despite early warnings about delays caused by supply chain issues and region-specific obstacles, the company maintained overly optimistic timelines.
2. Obfuscated Cost Overruns: While admitting budget increases, the company initially underreported the scale of the problem, revising the total cost from $1.1 billion to $2.0 billion by March 2025.
3. Cash Flow Mismanagement: By late 2024, the company’s cash reserves had shrunk to $533 million from $580 million, a decline attributed to excessive capital expenditures for Project Permian.

The lawsuits further cite the April 2025 departure of its CFO and COO as evidence of internal turmoil, which caused a 5.7% stock drop and signaled further instability.

The $100,000 Threshold: Why It Matters

To qualify as a lead plaintiff, investors must demonstrate losses exceeding $100,000. This threshold ensures only those with significant financial stakes can steer the case, a requirement under the Private Securities Litigation Reform Act. Investors with losses below the threshold can still join the class but lack the ability to influence litigation strategy.

The June 17, 2025, deadline is critical: failing to file a motion for lead plaintiff status by this date forfeits the right to participate actively. The Schall Law Firm and Pomerantz LLP are urging eligible investors to act promptly, as the class has not yet been certified.

The Broader Implications

The case underscores the risks of investing in high-profile, capital-intensive projects reliant on unproven technology. Project Permian, designed to demonstrate carbon capture and storage at scale, was central to NET Power’s valuation. Its repeated delays and cost overruns reveal the fragility of such ventures, where investor confidence hinges on transparent communication.

This visual would graphically illustrate the widening gap between initial projections and reality.

Conclusion: Act Now or Risk Losing Out

For NPWR investors with losses exceeding $100,000, this is a defining moment. The lawsuit could set a precedent for holding companies accountable for overly optimistic project timelines and undisclosed risks. With the stock trading at historic lows and the company’s financial health in question, the outcome may determine whether investors recover significant losses or face permanent capital erosion.

The data is clear: between June 2023 and March 2025, NPWR’s stock lost over 80% of its value. Those who acted on the company’s assurances now have a legal pathway to seek redress—if they act before June 17. The window is closing, and the stakes are existential for both investors and the future of NET Power itself.