“Insider Trading” | Lawsuit accuses heads of hydrogen company Plug Power of making money from ‘false and misleading statements’ | Charge – charge | Jewelry Dukan

The bosses of one of the world’s leading manufacturers of electrolyzers and fuel cells, Plug Power, have been accused of insider trading and making false and misleading statements in a class action lawsuit in the United States.

San Francisco law firm Schubert Jonckheer & Kolbe alleges that CEO Andy Marsh and Chief Financial Officer (CFO) Paul Middleton “made false and misleading statements to investors regarding the viability of the company’s hydrogen fuel cell business.”

in one expression On its website, the law firm writes: “Specifically, the company and its officers are accused, among other things, of conducting a long-running program to misstate the cost of liquid hydrogen shipped to customers, thereby inflating the perceived profitability of Plug’s core Power business.” .

“On May 14, 2021, the Company restated several prior period financial statements from 2018 through the third quarter of 2020 to resolve the misclassification. At the same time, Plug Power also revealed a material weakness in its internal controls, revealing that the company’s improper accounting practices allegedly uncovered by a new auditor date back to 2016.

“Shortly before the restatements, Mr. Marsh and Mr. Middleton, along with several other high-level insiders, including at least six directors and the company’s General Counsel and COO, sold approximately $45 million of their personal holdings of Plug Power stock [chief operating officer].

“The Company also completed two lucrative secondary offerings in November 2020 and February 2021 that collectively raised approximately $3 billion in additional capital based on these allegedly false and misleading statements.”

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The Schubert law firm says it is “investigating, on behalf of Plug Power Inc shareholders, potential derivative claims relating to possible false and misleading statements made to investors and material insider trading by several officers and directors” to which Plug, Marsh and Middleton “currently are exposed.” is a consolidated securities action of a class action lawsuit in the United States District Court for the Southern District of New York.”

Plug Power is headquartered in Latham, New York State.

Market shrugs

The lawsuit appears to have been met with a collective shrug from the market, with the company’s share price on the Nasdaq stock exchange still well above the $13-20 recorded all summer – at $29.59 when this article was published – just slightly below the $29.92 was seen at the end of Friday when the statement appeared quietly on the Schubert company’s website.

“Misjudgments will occur in any business that relies heavily on sudden business accelerations or price declines to meet its future goals. These are not to be confused with intentional untruths,” said Peter White, CEO and principal analyst at UK-based analyst Rethink Energy Load.

“The impact Plug Power has had in accelerating the hydrogen business model is unprecedented, and we believe it is likely that both the company and its potential will remain unaffected as we review past class action lawsuits that we have seen through have in the long run.

“That doesn’t mean that some of the findings won’t go against the company or that payments to the SEC won’t be made [the US government’s Securities and Exchange Commission] and others for false statements, but we believe that the potential of the markets in which it operates is so great and so long-term that there will be little, if any, long-term impact on its business and reputation. “

Load asked Plug Power and Schubert Jonckheer & Kolbe for a comment.

Plug currently has and is building a 1GW electrolyzer and fuel cell factory in Rochester, New York 2GW electrolyser plant in Queensland, Australiain a joint venture with Fortescue Future Industries, and is also building one 1GW electrolyser factory in South Korea in a joint venture with the SK Group.

In addition, the company is fast becoming a major developer of green hydrogen, having recently signed a deal to supply online giant Amazon with more than 10,000 tons of renewable H2 annually from 2025, while plans to build one were announced in June 100 MW green hydrogen production facility in the Belgian port of Antwerp-Bruges.

Read Load Current exclusive interview with Plug CEO Andy Marsh – who has held the position since 2008 – click here.

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