Fluence Energy Faces Class Action Lawsuit Amid Allegations of Financial Misstatements

Fluence Energy, Inc. (NASDAQ: FLNC), a leading provider of energy storage solutions, is now at the center of a major securities class action lawsuit alleging that the company misled investors about its financial health and key partnerships. The case, which seeks to recover losses for investors who purchased shares between November 29, 2023, and February 10, 2025, highlights a series of alleged misstatements and omissions that contributed to a 45% decline in the company’s stock price during the period.

The Allegations: Hidden Risks and Inflated Results

The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, accuses Fluence and its executives of violating the Securities Exchange Act of 1934 by concealing critical risks. Key claims include:
- Deteriorating Relationships: Fluence allegedly failed to disclose weakening ties with its founders and largest revenue sources, Siemens AG and The AES Corporation. These partnerships were central to its business model.
- Undisclosed Litigation: Siemens Energy, a U.S. affiliate of Siemens AG, sued Fluence in 2024, accusing it of engineering failures, design flaws, and fraud in its battery systems. The lawsuit, which threatened Fluence’s reputation and financial stability, was allegedly kept secret from investors.
- Aggressive Accounting: The complaint alleges Fluence artificially inflated revenue and margins through “revenue pull-forwards” and selective adjustments, masking declining sales as key partners distanced themselves.

Market Reactions and Stock Collapse

The allegations were first exposed in February 2024 when short-seller Blue Orca Capital published a report detailing the Siemens lawsuit and Fluence’s accounting practices. The revelation caused FLNC’s stock to plummet 13% in a single day, dropping from $17.01 to $14.73.

The final blow came on February 10, 2025, when Fluence reported a $57 million net loss—more than double the prior year’s $25.6 million loss—and a 49% year-over-year revenue decline to $186.8 million. The company also slashed its full-year revenue guidance, citing “customer-driven delays” and “competitive pressures.” Shares collapsed 46% that day, closing at $7.00—a stark contrast to its 2023 peak of over $40.

Legal Proceedings and Investor Deadlines

The lawsuit, Abramov v. Fluence Energy, Inc., is proceeding under Sections 10(b) and 20(a) of the Securities Exchange Act, which govern securities fraud and controlling person liability. A critical deadline looms: May 12, 2025, for investors to apply to serve as lead plaintiff. Lead plaintiffs must demonstrate significant financial harm and the capacity to represent the class.

Law Firms Representing Investors

Multiple prominent law firms are pursuing the case, including:
- The Gross Law Firm: Actively representing shareholders, with a focus on recovering losses. Investors can submit claims via their portal at
Fluence Loss Submission Form or contact attorney David Gross at dg@securitiesclasslaw.com (646-453-8903).
- Robbins Geller Rudman & Dowd LLP: Known for securing over $2.5 billion in recoveries in 2024. Contact J.C. Sanchez at info@rgrdlaw.com (800-449-4900).
- The Rosen Law Firm: Specializes in global investor rights, with a record of landmark recoveries. Submit claims via
Rosen Fluence Case Submission or contact Phillip Kim at case@rosenlegal.com (866-767-3653).

Investor Considerations

• Deadline Compliance: Missing the May 12 deadline could bar eligibility to serve as lead plaintiff, though participation in any eventual recovery does not require this status.
• No Upfront Costs: Legal representation operates on a contingency basis; fees are paid only if a recovery is secured.
• Case Certainty: A class has not yet been certified, so investors must formally enroll to ensure representation.

Broader Implications

Fluence’s case underscores the risks of overreliance on key partners and the importance of transparency in financial reporting. Despite reporting a record $5.1 billion backlog in Q1 2025, the company’s stock remains under pressure due to lingering legal and reputational issues. The outcome of this litigation could set a precedent for energy storage firms, emphasizing the need for rigorous oversight of partnerships and disclosures.

Conclusion: A Critical Crossroads for Investors

Fluence Energy’s story is a cautionary tale of corporate transparency and investor protection. With shares down 45% since late 2023 and a lawsuit alleging systemic fraud, the path forward hinges on legal outcomes and investor actions. Shareholders who held FLNC during the class period should act swiftly to secure their rights before the May 12 deadline.

The data tells the story: a 49% revenue drop, a $57 million net loss, and a stock price that has lost over three-quarters of its value since 2023 highs. For those affected, seeking representation from firms like The Gross Law Firm or Robbins Geller is not just an option—it’s a strategic necessity to mitigate irreversible financial harm.

As the energy storage sector grows, cases like this serve as a reminder that integrity in financial reporting is not just a legal obligation but a pillar of long-term investor trust.