Fluence Energy, Inc. (FLNC) Securities Class Action Lawsuit Update [April 7, 2025]

Introduction 

This is a shareholder alert about the Fluence Energy lawsuit filed on or about March 11, 2025. The lawsuit has been filed in the U.S. District Court for the Eastern District of Virginia.

Fluence Energy, Inc. is a global provider of energy storage products and solutions, and optimization software for storage and renewables. The Company’s business operations are conducted through Fluence Energy, LLC, which is a joint venture with Siemens Industry, Inc. and AES Grid Stability, LLC.  

In February 2024, it was revealed that Siemens and AES had been divesting their interest in the joint venture and that Siemens had filed a lawsuit in November 2023 accusing Fluence Energy of engineering failures and fraud. It was also revealed that the Company’s financial health was misrepresented due to revenue pull-forwards and selectively applied earnings adjustments, and that reported revenues were to decline significantly as Siemens and AES continued to divest. This represented a significant departure from the previously set fiscal 2025 revenue guidance. 

Investors reacted negatively to this news and Fluence Energy’s stock price crashed 13% the next day.  

A class action lawsuit has been filed against Fluence Energy, Inc. and certain of its officers for alleged violations of federal securities laws. Among other things, the lawsuit alleges that Fluence Energy and certain of its top current and former executives violated the Securities Exchange Act of 1934 by making false and/or misleading statements related to the company's battery energy storage business and financial prospects. Additionally, the lawsuit alleges Fluence Energy concealed declines in sales and earnings growth by engaging in aggressive revenue pull-forwards and selectively applied earnings adjustments.

Fluence Energy (FLNC) Case Details  

Abramov v. Fluence Energy, Inc., et al 1:25-cv-00444  

U.S. District Court, Eastern District of Virginia 

Filed on March 11, 2025  

Fluence Energy, Inc. (FLNC) Company Profile  

Fluence Energy, LLC is a joint venture between Siemens Industry, Inc. (“Siemens Industry,” which is an indirect subsidiary of Siemens AG) and AES Grid Stability, LLC (“AED Grid Stability,” which is an indirect subsidiary of the AES Corporation). Qatar Holding LLC (“Qatar Holding”, an affiliate of the Qatar Investment Authority, “QIA”)) is also a major equity holder in Fluence Energy. In addition to holding significant voting power in Fluence Energy, Siemens and AES have historically been Fluence Energy’s largest customers. In December 2022, Fluence Energy disclosed that about 54% of its revenue was with “related parties.” That percentage declined in 2023 and 2024, but remained above 29%.   

According to Fluence Energy’s Web site, it specializes “in energy storage products and services, and cloud-based software for renewables and storage. . . . [It] provides an ecosystem of offerings to drive the clean energy transition[.]” 

Fluence Energy (FLNC) Class Period 

The class period for this lawsuit is November 29, 2023 to February 10, 2025, inclusive.  

Fluence Energy Lawsuit (FLNC) Allegations  

Fluence’s relationship with AES and Siemens soured. On November 28, 2023, Siemens Energy filed a counterclaim against Fluence Energy alleging Fluence’s work on the project caused over $9 million in damages (Fluence sued Siemens for breach of contract and fraudulent inducement). Despite the serious claims, Fluence concealed these facts in its public filings.   

At the same time, AES began divesting its holdings in Fluence Energy. If AES’s ownership stake Fluence Energy dropped below 10%, its exclusivity agreement with Fluence terminated. Thus, AES’ sale of Fluence Energy shares worked to release it from exclusivity with Fluence – and posed a serious threat to Fluence because AES was one of its major customers.    

From November 2023 to February 2024, the Company issued its regular earnings reports. In those reports, the Company failed to disclose its dispute with Siemens. It also failed to disclose AES’ divesture of its Fluence stake.    

On February 22, 2024, shortseller Blue Orca Capital issued a report revealing the dispute between Siemens and Fluence and that AES was divesting its Fluence Energy shares. Blue Orca accused Fluence of having material weaknesses in its internal controls and that Fluence selectively applied earnings adjustments and other revenue recognition techniques. As a results, Fluence reported revenues were unreliable, especially in light of the imminent loss of support from its two largest customers, Siemens and AES.  

Investors reacted negatively to the Blue Orca report and Fluence’s stock price dropped 13% within a day.   

However, Fluence’s executives denied the Blue Orca allegations. The Company claimed Blue Orca “wrong implies AES is moving away from Fluence” and “Fluence continues to be AES’ preferred Battery Energy Storage Systems technology provider.” The Company further asserted “the litigation with Siemens Energy has no effect on our relationship with Siemens.”  

Indeed, during its August 2024 earnings call, Fluence affirmed its FY-24 revenue outlook and FY-25 fiscal outlook – despite its knowledge of the turmoil surrounding the Company’s two largest clients.  

The Truth Emerges  

On February 10, 2025, Fluence issued a press release announcing its Q1-25 financial results.  The Company suffered a $57 million loss, with revenues down 49% year-over-year.  Fluence substantially reduced its revenue guidance, saying that “customer-driven delays in signing certain contracts, coupled with competitive pressures, result in the need to lower our fiscal year 2025 outlook.” 

Market Reaction  

Investors reacted negatively to this news.  Fluence Energy’s stock crashed nearly 47% overnight.   

Next Steps  

• Submissions for lead plaintiff are due May 12, 2025    

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.    

• The Court will then consider motion for class certification.     

• The Court will later consider a Motion to Dismiss.