The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Plug Power Inc. (PLUG)
Shareholders with $100,000 losses or more are encouraged to contact the firm
LOS ANGELES, April 13, 2021 /PRNewswire/ -- The Law Offices of Frank R. Cruz reminds investors of the upcoming May 7, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Plug Power Inc. ("Plug" or the "Company") (NASDAQ: PLUG) securities between November 9, 2020 and March 1, 2021, inclusive (the "Class Period").
If you are a shareholder who suffered a loss, click here to participate.
On March 2, 2021, before the market opened, Plug filed a Notification of Late Filing with the SEC stating that it could not timely file its annual report for the period ended December 31, 2020 because the Company was completing a "review and assessment of the treatment of certain costs with regards to classification between Research and Development versus Costs of Goods Sold, the recoverability of right of use assets associated with certain leases, and certain internal controls over these and other areas." The Company stated that "[i]t is possible that one or more of these items may result in charges or adjustments to current and/or prior period financial statements."
On this news, the Company's stock price fell $3.68, or 7%, to close at $48.78 per share on March 2, 2021, on unusually heavy trading volume. The share price continued to decline by $9.48, or 19.4%, over three consecutive trading sessions to close at $39.30 per share on March 5, 2021, on unusually heavy trading volume.
Then, on March 16, 2021, after the market closed, Plug issued a press release revealing that its financial statements for the fiscal years 2018 and 2019 and for the quarterly periods of fiscal 2019 and 2020 should no longer be relied upon. The Company stated that the financial statements for these periods would be restated to increase the loss accrual relating to certain service contracts; to reduce the carrying amount of certain right of use assets; to reclassify certain costs; and to recognize impairment charges related to certain long-lived assets. As a result, Plug stated that it would report a material weakness in its internal control over financial reporting in its fiscal 2020 annual report.
On this news, the Company's stock price fell as much as 12% during afterhours trading on March 16, 2021, injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company would be unable to timely file its 2020 annual report due to delays related to the review of classification of certain costs and the recoverability of the right to use assets with certain leases; (2) that the Company was reasonably likely to report material weaknesses in its internal control over financial reporting; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased or otherwise acquired Plug securities during the Class Period, you may move the Court no later than May 7, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
Share this article