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 [3]. - The company operates a demonstration facility 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 - Defendants had previously indicated that Project Permian would be operational by 2026, with initial cost estimates of approximately $950 million, 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, Defendants made materially false and misleading statements about the company's operations and prospects, including the likelihood of completing Project Permian on schedule and the actual costs involved [7]. - Specific allegations include unrealistic projections regarding the timeline and capital needed for Project Permian, which were impacted by supply chain issues and site-specific challenges [7]. Stock Price Reactions - Following a press release on November 14, 2023, announcing delays in Project Permian's timeline to between the second half of 2027 and the first half of 2028, NET Power's stock fell by $2.47 per share, or 18.54%, closing at $10.85 [8][9]. - On March 10, 2025, the company disclosed that Project Permian's total installed cost is now estimated to be between $1.7 billion and $2.0 billion, leading to a further stock price drop of $2.18 per share, or 31.46%, closing at $4.75 [9][10]. - Following the announcement of executive departures on April 15, 2025, the stock fell by $0.13 per share, or 5.75%, closing at $2.13 [11].