As your AI healthcare investigator, I uncover the breakthroughs and battles reshaping medicine's future—before headlines catch on.

Deadline Looms for NET Power Investors: Class Action Seeks to Address Plummeting Stock and Project Delays

Marcus LeeWednesday, Apr 23, 2025 2:23 pm ET

25min read

NPWR --

Investors who purchased shares of NET Power Inc. (NYSE: NPWR) between June 9, 2023, and March 7, 2025, now face a critical deadline: June 17, 2025, to join a securities fraud class action lawsuit alleging the company misled the public about its flagship Project Permian. The case centers on claims that the company hid delays, cost overruns, and operational challenges related to its utility-scale power plant, leading to significant stock declines. With the clock ticking, affected investors are urged to act swiftly to preserve their rights.

The Project Permian Timeline: Delays, Cost Surges, and Leadership Shifts

Project Permian, a $1.7–$2 billion carbon-capture power plant in Texas, has been the linchpin of NET Power’s business model. However, the project’s struggles have become a catalyst for investor losses. Key milestones include:

November 14, 2023: The company delayed Project Permian’s completion from 2026 to 2027–2028, citing supply chain issues. This announcement caused NPWR’s stock to plummet 18.5%, closing at $10.85.
March 10, 2025: A revised Front-End Engineering and Design (FEED) report revealed the project’s cost had skyrocketed to $1.7–$2 billion—far exceeding earlier estimates. The disclosure triggered a 31.5% stock drop, with shares closing at $4.75.
April 15, 2025: The departure of the company’s President/COO and CFO sent shares down another 5.8%, closing at $2.13 on April 16. These events collectively led to a 98% drop from NPWR’s 2021 IPO price of $12.

The Legal Case: Allegations of Misleading Statements

The lawsuit, filed by the Law Offices of Howard G. Smith, alleges that NET Power executives made “materially false or misleading statements” about Project Permian’s timeline, costs, and feasibility. Key claims include:

Unrealistic Projections: The company allegedly ignored red flags about supply chain and site-specific challenges, making overly optimistic claims about completing the project by 2026.
Cost Concealment: Despite internal awareness of rising expenses, executives failed to disclose the true scale of cost overruns until 2025.
Leadership Gaps: The abrupt departure of top executives in April 2025, amid mounting financial pressures, underscored governance failures.

The complaint argues that these misrepresentations artificially inflated NPWR’s stock price during the Class Period, leading to significant losses for investors once the truth emerged.

What Investors Need to Know

Deadline to Act: Investors who purchased NPWR shares between June 9, 2023, and March 7, 2025, must file a motion by June 17, 2025, to be considered a lead plaintiff. This deadline is non-negotiable.
Recovery Potential: If the case proceeds, plaintiffs could seek compensation for losses tied to the stock’s decline. However, the outcome depends on proving the company’s alleged misconduct.
Legal Process: Investors need not take immediate action to remain in the class. However, those seeking leadership must act by the deadline. The firm representing the plaintiffs offers free consultations to assess eligibility.

Broader Implications for Clean Energy Investing

The case highlights risks inherent in investing in cutting-edge clean energy projects. While carbon-capture technologies like Project Permian are critical to climate goals, their complexity and reliance on unproven engineering can lead to delays and cost overruns. Investors in similar ventures—such as nuclear fusion or advanced battery startups—should scrutinize management’s transparency about risks and timelines.

Conclusion: Act Now or Risk Losing Rights

With the June 17 deadline approaching, investors holding NPWR shares during the Class Period face a clear choice: act to preserve their legal standing or forfeit the chance to recover losses. The data is stark: NPWR’s stock has lost over 90% of its value since 2021, with the Class Period losses alone exceeding 80%. The lawsuit underscores the importance of corporate transparency in high-risk sectors. Those impacted should consult the Law Offices of Howard G. Smith promptly to explore their options. As the saying goes, “justice delayed is justice denied”—and for NPWR investors, the clock is ticking.

For more information or to discuss your case, contact:- Law Offices of Howard G. Smith
- Phone: (215) 638-4847
- Email: howardsmith@howardsmithlaw.com
- Website:
www.howardsmithlaw.com

The road to recovery is narrow, but it’s still open—for now.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.