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 financial prospects [1][7]. Company Overview - NET Power Inc. 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 Plant in La Porte, Texas, to validate its technology 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 outlook, 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 accuracy of cost estimates [7]. - Specific allegations include that the project was unlikely to be completed on time and would incur significantly higher costs due to supply chain issues and other challenges [7]. Impact of Recent Announcements - On November 14, 2023, NET Power announced a delay in the initial power generation timeline for Project Permian to between the second half of 2027 and the first half of 2028, causing an 18.54% drop in stock price [8][9]. - On March 10, 2025, the company revised the total installed cost of Project Permian to between $1.7 billion and$2.0 billion, leading to a further 31.46% decline in stock price [10]. - Following the announcement of executive departures on April 15, 2025, the stock price fell by 5.75% [11].