Plug Power Inc. (PLUG) Officers and Directors Under Investigation for Possible False Statements and Insider Trading
Schubert Jonckheer & Kolbe LLP is investigating potential derivative claims on behalf of shareholders of Plug Power Inc. (NASDAQ: PLUG) relating to possible false and misleading statements to investors and significant insider trading by several officers and directors.
Plug Power and its CEO and CFO, Andrew Marsh and Paul Middleton, are currently subject to a consolidated class action securities lawsuit in the U.S. District Court for the Southern District of New York alleging they made false and misleading statements to investors concerning the profitability of the company’s hydrogen fuel cell business. Specifically, among other things, the company and its officers are alleged to have carried out a long-running scheme to misclassify the cost of liquid hydrogen delivered to customers, thus inflating the perceived profitability of Plug Power’s core business. On May 14, 2021, the company restated several prior-period financial statements from 2018 through the third quarter of 2020 to address the misclassification. At the same time, Plug Power also disclosed a material weakness in internal controls and announced that the company’s improper accounting practices, allegedly uncovered by a new auditor, dated back to 2016.
Shortly before the restatements, Mr. Marsh and Mr. Middleton sold approximately $45 million of their personal holdings of Plug Power stock alongside several other high-level insiders, including at least six directors and the company’s General Counsel and COO. The company also conducted two lucrative secondary offerings in November 2020 and February 2021, together netting approximately $3 billion of additional capital on the basis of these allegedly false and misleading statements.
The Schubert Firm is investigating potential breaches of fiduciary duty by Plug Power’s officers and directors in connection with these allegations. If you own stock in Plug Power and wish to obtain additional information about your legal rights, please complete the form below for a free legal consultation.
