Glancy Prongay & Murray LLP Urges NET Power (NPWR) Investors to Act Amid Ongoing Securities Fraud Lawsuit
25min read Investors in net power Inc. (NYSE: NPWR) are under urgent pressure to evaluate their legal options following an active securities fraud class action lawsuit alleging material misrepresentations by the company and its executives. Led by Glancy Prongay & Murray LLP and other prominent law firms, the case—Luciani v. NET Power Inc., No. 25-cv-00296 (M.D.N.C.)—accuses the company of misleading investors about its flagship Project Permian, a carbon-capture power plant. With a June 17, 2025, deadline to join as a lead plaintiff, the stakes for shareholders are high.
Key Allegations: Project Permian’s Timeline and Cost Deception
The lawsuit centers on claims that NET Power misrepresented the feasibility of Project Permian, a $2 billion utility-scale power plant in Texas. Key allegations include:
1. False Timeline Promises: The company initially assured investors the plant would be operational by 2026, despite internal knowledge of supply chain delays and site-specific logistical challenges. By November 2023, NET Power admitted the timeline had slipped to late 2027 or early 2028, causing a 18.5% stock plunge to $10.85.
2. Cost Overruns Concealed: In March 2025, the company revealed Project Permian’s costs had soared to $1.7–2.0 billion, nearly double the prior $1.1 billion estimate. This disclosure triggered a 31.5% drop to $4.75.
3. Executive Departures: By April 2025, the resignation of the COO and CFO further rattled investors, pushing shares down another 5.8% to $2.13.
Stock Price Impact: A Steep Decline Reflects Investor Losses
The lawsuit underscores how repeated setbacks eroded investor confidence. The stock’s trajectory since 2023 paints a stark picture:
- June 2023: Shares traded at around $12.
- November 2023: Dropped to $10.85 after the first delay announcement.
- March 2025: Fell to $4.75 following cost revisions.
- April 2025: Closed at $2.13 after executive departures.
This reflects a 96% decline from pre-lawsuit highs, with investors suffering substantial losses.
Legal Deadlines: Act Before June 17, 2025
The case is now in its critical phase. Investors who purchased or held NPWR shares between June 9, 2023, and March 7, 2025, may qualify to join the class action. However, those seeking to serve as lead plaintiff must file motions by June 17, 2025. Key deadlines and contacts include:
- Glancy Prongay & Murray LLP: Charles Linehan, Esq. (310-201-9150, shareholders@glancylaw.com).
- Robbins Geller Rudman & Dowd LLP: J.C. Sanchez or Jennifer N. Caringal (800-449-4900, info@rgrdlaw.com).
Why This Matters for Investors
NET Power’s case highlights the risks of investing in high-stakes energy projects with unproven technologies. While the company’s carbon-capture innovation is promising, its failure to disclose critical risks—such as supply chain bottlenecks and site-specific challenges—violated securities laws. The lawsuit seeks to recover losses for investors misled by optimistic projections.
Conclusion: A Cautionary Tale for Energy Investors
The NET Power lawsuit serves as a reminder of the fragile balance between innovation and transparency in capital-intensive industries. With $1.7 billion in projected costs and delays stretching into 2029, the company’s initial timeline and budget estimates now appear deeply flawed.
For investors, the path forward is clear:
1. Evaluate Losses: Calculate holdings during the Class Period.
2. Consult Legal Counsel: Contact law firms by June 17 to explore lead plaintiff status or class membership.
3. Monitor SEC Filings: The case could set precedents for how companies disclose risks in emerging sectors like clean energy.
The stock’s 96% decline since 2023 underscores the severity of the fraud allegations. As Glancy Prongay & Murray LLP emphasizes, timely action is critical to preserve recovery opportunities.
In a sector where technological promises often outpace reality, this case reinforces the need for rigorous due diligence—and the consequences of corporate overreach.
