CoreWeave Shares Drop 1.3% Amid Legal Scrutiny as $1.95B Volume Ranks 52nd

Market Snapshot

CoreWeave (CRWV) closed on February 25, 2026, with a 1.30% decline, marking its fifth consecutive day of negative performance. The stock traded at a volume of $1.95 billion, ranking 52nd in daily trading activity. Despite its recent volatility, the company remains a focal point for investors amid ongoing legal scrutiny and operational challenges. The selloff follows a broader pattern of market skepticism, with the stock having shed approximately $14 billion in market capitalization since late 2025 due to unresolved concerns over its AI infrastructure scalability.

Key Drivers

The recent legal actions against CoreWeave have intensified scrutiny of its operational transparency, particularly regarding delays in critical data center projects. A pending class action lawsuit alleges that the company misled investors by overstating its ability to scale AI infrastructure and meet customer demand. Specifically, the suit claims CoreWeave concealed systemic construction delays at its Denton, Texas facility, which were revealed in a December 2025 Wall Street Journal report. These delays, which pushed back project timelines by months, are said to have directly undermined the company’s revenue projections and eroded investor confidence.

Central to the allegations is the company’s reliance on a single third-party data center supplier, a dependency that plaintiffs argue was downplayed in public communications. The lawsuit contends that CoreWeave’s management presented an overly optimistic view of its infrastructure capabilities, masking the operational risks tied to this concentrated supplier relationship. This misalignment between public assurances and the reality of construction bottlenecks has raised concerns about the feasibility of the company’s multibillion-dollar backlog. As a result, investors who purchased shares during the period of March 28–December 15, 2025, face significant losses, with the stock plummeting 16% in November 2025 after the company revised its revenue guidance.

The market’s reaction has been compounded by the termination of CoreWeave’s proposed merger with Core Scientific, a deal that had been touted as a strategic move to accelerate infrastructure expansion. The failed merger, announced in October 2025, further highlighted the company’s vulnerability to external disruptions and reinforced doubts about its standalone execution capabilities. Legal experts suggest that the ongoing litigation underscores broader risks for firms operating in the AI infrastructure sector, where rapid scaling and supply chain dependencies are critical success factors.

Multiple law firms have now launched parallel investigations into CoreWeave’s disclosures, with lead plaintiff deadlines set for March 13, 2026. These lawsuits collectively allege material misstatements and omissions that distorted the company’s financial outlook. While CoreWeave has not issued a formal response to the allegations, the mounting legal pressure has prompted calls for stricter oversight of corporate disclosures in high-growth technology sectors. Analysts note that the outcome of these cases could set a precedent for how courts evaluate claims of operational overreach in AI-focused firms.

The stock’s continued underperformance reflects a broader market skepticism toward companies making aggressive scalability claims without commensurate operational safeguards. As the legal proceedings unfold, investors remain cautious, with many awaiting clarity on CoreWeave’s ability to address its infrastructure bottlenecks and diversify its supplier base. The case serves as a cautionary tale for firms navigating the intersection of technological ambition and supply chain realities in the AI era.