NET Power Investors: Can You Lead a Class Action Lawsuit Over Project Permian's Delays?

Investors in NET Power Inc. (NYSE: NPWR) who suffered losses over the past year now have a chance to lead a securities fraud class action lawsuit accusing the company of misleading investors about its flagship Project Permian—a $2 billion clean energy project in Texas. The case, Luciani v. NET Power Inc., No. 25-cv-00296 (M.D.N.C.), alleges the company concealed delays and cost overruns, artificially inflating its stock price. Here’s what investors need to know.

The Project Permian Problem

NET Power’s Project Permian, a 400-megawatt power plant in La Porte, Texas, was marketed as a breakthrough in carbon capture technology. The company promised the plant would be operational by 2026, but repeated setbacks exposed the risks.

The lawsuit claims executives misled investors about three critical issues:
1. Timeline Delays: The project’s completion date was pushed from 2026 to between late 2027 and early 2028 (Nov 2023), then to “no earlier than 2029” (Mar 2025).
2. Cost Surges: The budget ballooned from $1.1 billion to $1.7–2.0 billion due to supply chain disruptions and “first-of-a-kind” engineering challenges.
3. Leadership Changes: The abrupt departure of its President/COO and CFO in April 2025 signaled internal turmoil.

Each disclosure triggered sharp stock declines:
- Nov 14, 2023: -18% to $10.85
- Mar 10, 2025: -31.5% to $4.75
- Apr 16, 2025: -5.8% to $2.13

The Legal Landscape

The case accuses NET Power of violating the Securities Exchange Act of 1934 by making materially false statements and omitting critical risks. Investors who bought shares between June 9, 2023, and March 7, 2025, may qualify to join the class. A lead plaintiff—a representative investor with significant losses—must file by June 17, 2025, to direct litigation.

Multiple law firms are recruiting plaintiffs, including:
- Robbins Geller Rudman & Dowd LLP: Known for recovering $2.5 billion in securities cases in 2024.
- Levi & Korsinsky, LLP: A top firm with a focus on investor rights.
- Bernstein Liebhard LLP: Specializes in class actions, with over $3.5 billion in recoveries.

Participation is free for class members, as firms work on contingency.

Risks and Opportunities

While the lawsuit highlights risks for current shareholders, it also underscores the fragility of high-stakes projects like Project Permian. The delays and cost overruns have already cost investors billions: NPWR’s stock has fallen 79% from its 52-week high of $10.85 to its April 2025 low of $2.13.

However, the company’s clean energy tech—capable of capturing 90% of carbon emissions—remains a compelling long-term bet. The lawsuit’s outcome could determine whether NPWR rebuilds trust or faces a reckoning over its financial transparency.

Conclusion

Investors holding NPWR shares during the class period face a stark choice: join the lawsuit to recover losses or risk further erosion of value amid ongoing uncertainties. With Project Permian’s completion now delayed to 2029 and costs nearly doubling, the case could set a precedent for how companies disclose risks in high-profile infrastructure projects.

The June 17 deadline for lead plaintiff applications is critical. For those considering action, the data is clear:
- Stock Drop: NPWR fell 31.5% in a single day (Mar 10, 2025) after cost revelations.
- Legal Precedent: Robbins Geller, one of the lead firms, has secured $7.2 billion in recoveries, including the largest securities class action settlement in history (In re Enron Corp. Sec. Litig.).

While the road to recovery for NPWR is uncertain, the lawsuit offers investors a rare chance to hold the company accountable—and potentially recoup losses. The next move is theirs.