Pomerantz Law Firm Files Class Action Against Plug Power

Lawsuit alleges company misled investors about DOE loan program

Mar. 31, 2026 at 8:21pm

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A photorealistic studio still life featuring a shiny metal fuel cell component, a stack of financial reports, and a cracked smartphone screen, arranged elegantly on a clean white background to symbolize the abstract concepts of corporate strategy, finance, and technology disruption in the renewable energy sector.A shattered facade conceals the complex financial and technological challenges facing Plug Power as it navigates the transition to clean hydrogen energy.NYC Today

Pomerantz LLP has filed a class action lawsuit against Plug Power Inc. and certain officers, alleging the company made materially false and misleading statements about the likelihood of receiving funds from a $1.66 billion loan guarantee from the U.S. Department of Energy's Loan Program Office. The lawsuit claims Plug Power overstated its ability to construct the necessary hydrogen production facilities to qualify for the DOE loan, and that the company was likely to pivot to more modest projects with less commercial upside.

Why it matters

This lawsuit highlights concerns about Plug Power's transparency with investors regarding its ability to execute on major infrastructure projects required to receive government funding. The abrupt departure of two key executives and the company's decision to suspend activities under the DOE loan program raise questions about Plug Power's operational challenges and long-term strategy.

The details

The class action lawsuit, filed in the U.S. District Court for the Northern District of New York, alleges Plug Power made false and misleading statements about the likelihood of receiving funds from a $1.66 billion DOE loan guarantee announced in January 2025. The lawsuit claims Plug Power overstated its ability to construct the six hydrogen production facilities necessary to qualify for the loan, and that the company was likely to shift to smaller-scale projects with less commercial potential. In October 2025, Plug Power announced the abrupt departures of its CEO and President, followed by the company's November 2025 announcement that it was suspending activities under the DOE loan program to redeploy capital elsewhere.

  • On January 16, 2025, Plug Power announced it had closed a $1.66 billion loan guarantee from the U.S. Department of Energy's Loan Program Office.
  • On October 7, 2025, Plug Power announced the departures of its CEO and President, effective in the coming weeks.
  • On November 10, 2025, Plug Power reported its Q3 2025 financial results and announced it was suspending activities under the DOE loan program.
  • On November 13, 2025, The Washington Examiner reported that Plug Power had confirmed it was suspending plans to construct six hydrogen production facilities under the DOE loan.

The players

Plug Power Inc.

A provider of hydrogen fuel cell turnkey solutions for the electric mobility and stationary power markets in North America and Europe.

Andrew Marsh

Former Chief Executive Officer of Plug Power who stepped down in October 2025.

Sanjay Shrestha

Former President of Plug Power who stepped down in October 2025.

Jose Luis Crespo

Chief Revenue Officer of Plug Power who was appointed as the new CEO and President in October 2025.

Pomerantz LLP

A law firm that filed the class action lawsuit against Plug Power and certain officers.

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What they’re saying

“As a result, we have suspended activities under the DOE loan program, allowing us to redeploy capital.”

— Plug Power

What’s next

The judge will decide by April 3, 2026 whether to appoint a lead plaintiff for the class action lawsuit against Plug Power.

The takeaway

This case highlights the importance of transparency and accountability for companies seeking government funding for major infrastructure projects. Plug Power's abrupt executive changes and decision to suspend the DOE loan program raise concerns about the company's operational challenges and long-term strategy, which will be further scrutinized through the class action lawsuit.