Plug Power Faces Securities Fraud Lawsuit Over DOE Loan Claims

Investors Encouraged to Contact Law Firm Before Upcoming Deadline

Mar. 18, 2026 at 11:41am

Got story updates? Submit your updates here. ›

A securities fraud class action has been filed against Plug Power Inc. and its executives, alleging misrepresentations about a $1.66 billion Department of Energy loan and plans to construct hydrogen production facilities, which led to significant stock declines for the company.

Why it matters

The lawsuit alleges that Plug Power overstated the likelihood of accessing the DOE loan funds and building the planned hydrogen facilities, which ultimately led to a 17% stock drop when the company suspended activities related to the DOE program. This case highlights the importance of accurate disclosures by public companies and the potential consequences of alleged securities fraud.

The details

The class action lawsuit, filed in the U.S. District Court for the Northern District of New York, asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Plug Power securities. The complaint alleges that the company and its executives made misstatements about the likelihood of receiving the DOE loan and constructing the hydrogen production facilities, which led to significant stock declines when the truth was revealed.

  • On October 7, 2025, Plug Power announced the abrupt departure of its CEO and President, causing the stock price to drop 6.3%.
  • On November 10, 2025, Plug Power announced it was suspending activities under the DOE loan program, causing the stock price to drop 3.4%.
  • On November 13, 2025, The Washington Examiner reported that Plug Power had confirmed it was suspending plans to construct the hydrogen facilities, causing the stock price to drop 17.6%.

The players

Plug Power Inc.

A provider of hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets, and developer of hydrogen production infrastructure.

Andrew Marsh

Former CEO of Plug Power.

Sanjay Shrestha

Former President of Plug Power.

Bleichmar Fonti & Auld LLP

A leading international law firm representing plaintiffs in securities class actions and shareholder litigation.

U.S. Department of Energy

The federal agency that Plug Power allegedly misrepresented its ability to access a $1.66 billion loan from.

Got photos? Submit your photos here. ›

What’s next

The lead plaintiff deadline in the case is April 3, 2026, and investors are encouraged to contact Bleichmar Fonti & Auld LLP to discuss their rights.

The takeaway

This case highlights the importance of accurate disclosures by public companies and the potential consequences of alleged securities fraud. Investors should be vigilant in monitoring the companies they invest in and seek legal counsel if they believe they have been misled.