Pomerantz Law Firm Announces the Filing of a Class Action Against NET Power Inc. and Certain Officers – NPWR

Core Viewpoint - A class action lawsuit has been filed against NET Power Inc. and certain officers for alleged violations of federal securities laws during the Class Period from June 9, 2023, to March 7, 2025, seeking damages for misleading statements regarding the company's business and operations [1][7]. Company Overview - NET Power is a clean energy technology company focused on its "Net Power Cycle" technology, which aims to generate reliable and affordable electricity from natural gas while capturing nearly all emissions [4]. - The company operates a demonstration facility in La Porte, Texas, and is developing its first utility-scale plant, referred to as "Project Permian," located in the Permian Basin of West Texas [4]. Project Permian Details - Initially, NET Power projected that Project Permian would be operational in 2026, with a cost estimate of approximately $950 million in 2023, which later increased to $1.1 billion in 2024 [5][6]. - The completion of Project Permian is critical for the company's commercial operations and financial prospects, making the accuracy of timelines and cost estimates vital for investors [6]. Allegations in the Lawsuit - The lawsuit claims that throughout the Class Period, NET Power's executives made materially false and misleading statements about the company's operations and prospects, including the likelihood of completing Project Permian on schedule and the associated costs [7]. - Specific allegations include that the project was unlikely to be completed on time due to supply chain issues and other challenges, and that the projected costs were unrealistic [7]. Stock Price Reactions - Following a press release on November 14, 2023, announcing a delay in Project Permian's timeline to between the second half of 2027 and the first half of 2028, NET Power's stock price fell by $2.47, or 18.54%, closing at $10.85 [8][9]. - On March 10, 2025, the company announced a revised total installed cost for Project Permian between $1.7 billion and $2.0 billion, leading to a further stock price decline of $2.18, or 31.46%, closing at $4.75 [10]. - Following the announcement of the departure of key executives on April 15, 2025, the stock price dropped by $0.13, or 5.75%, to close at $2.13 [11].