NET Power's Costly Missteps: A Shareholder Lawsuit and the Risks of Overpromising in Clean Energy

The recent class action lawsuit against NET Power Inc. (NYSE: NPWR), led by Kahn Swick & Foti, LLC (KSF)—a firm with a track record of holding corporations accountable for financial misstatements—highlights a critical lesson for investors in the clean energy sector: promises of breakthrough technology must be matched by transparent execution. At the heart of the dispute is Project Permian, a flagship carbon-capture power plant whose spiraling costs and delayed timeline have sparked allegations of material omissions by the company’s executives.

The Allegations: When Estimates Collide with Reality

The lawsuit, Luciani v. Net Power Inc. et al. (Case No. 25-cv-00296), accuses the company of misleading investors between June 9, 2023, and March 7, 2025, by failing to disclose escalating risks to Project Permian. The project, designed to demonstrate NET Power’s proprietary Allam Cycle technology, was initially projected to cost $1.1 billion and be completed by late 2027 or mid-2028. However, on March 10, 2025, the company revealed the cost had skyrocketed to $1.7 billion to $2.0 billion, with completion pushed to no earlier than 2029.

This revelation caused shares to plummet 31.46%, closing at $4.75—a stark reversal from the $6.93 price tag just days earlier. The drop underscores the market’s skepticism toward overhyped clean energy projects, especially those reliant on unproven technologies.

The Legal and Financial Stakes

For investors who bought NPWR shares during the Class Period, the lawsuit presents both risks and opportunities. The $100,000+ loss threshold cited in the alert suggests the firm is targeting institutional investors, though retail holders are also eligible. The June 17, 2025, lead plaintiff deadline is critical: those who act may secure a seat at the table to negotiate settlements or shape litigation strategy.

The case hinges on proving that NET Power’s executives knew—or should have known—about Project Permian’s cost and timeline challenges but withheld this information to prop up the stock. If successful, the settlement could pressure the company to restructure its finances or accelerate Project Permian’s completion, though the latter seems unlikely given the delays.

Broader Implications for Clean Energy Investing

NET Power’s struggles mirror a growing theme in the sector: the gap between ambitious climate goals and the execution challenges of nascent technologies. While companies like NET Power are vital to decarbonization, investors must demand rigorous disclosures about technical feasibility and capital requirements.

The lawsuit also raises questions about accountability in an era of ESG-driven investing. If companies like NPWR can renege on cost targets without consequence, it could erode trust in the sector’s ability to deliver on climate promises.

Conclusion: A Crossroads for NPWR and Its Investors

The June 17, 2025, deadline is not merely a procedural hurdle—it’s a moment of reckoning. For shareholders, the path forward depends on whether they act swiftly to assert their rights. The data is clear: the revised Project Permian costs represent a 54% to 82% overrun from initial estimates, while the stock’s March 10 crash erased over $500 million in market capitalization in a single day.

Investors holding losses should consult KSF or ClaimsFiler to explore their options. For the broader market, this case serves as a cautionary tale: in the race to green the economy, transparency and financial prudence must never be sidelined. As the legal battle unfolds, the stakes are high—not just for NPWR’s shareholders, but for the credibility of clean energy innovation itself.

Action Items for Investors:
- Contact KSF toll-free at 1-877-515-1850 or via email at lewis.kahn@ksfcounsel.com.
- Submit claims via https://claimsfiler.com/cases/nyse-npwr/ by June 17, 2025.

The clock is ticking, and the market’s patience is thin.