Net Power, Inc. (NPWR) Securities Class Action Lawsuit Update [May 15, 2025]

Introduction

A securities class action lawsuit has been filed against Net Power, Inc. (“Net Power” or the “Company”) for alleged violations of federal securities laws during the period from June 9, 2023 to March 7, 2025, inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors who purchased or otherwise purchased Net Power securities during the Class Period.

Net Power is a clean energy technology company which specializes in a unique clean power technology. The Company does not have an operational power plant, though it owns a research development facility at La Porte, Texas. The La Porte facility conducts research and development to open Net Power’s first full-scale plant (called “SN1”), an effort called “Project Permian.” 

Net Power originally told investors $950 million was needed to complete Project Permian.  The Company expected the Project to be completed in 2026.  It then upped cost estimates to $1.1 billion and backed the completion date to 2026-2027.   

In March 2025, the Company again revised its cost estimates and timeframe need to complete Project Permian, as it was unlikely to complete Project Permian on schedule. Now, Net Power expected to complete Project Permian in 2029, with a $1.7 to $2.0 billion price tag.  It attributed this change to numerous site- and region- specific challenges (which previously were undisclosed to investors).  The Company also revealed its cash on hand substantially diminished over the prior quarter due to Project Permian experiences. 

Investors reacted negatively to the news and Net Power’s stock plummeted 31.46% on this news.  

Net Power, Inc.  (NPWR) Lawsuit Case Details

Luciani v. Net Power, Inc., et al  

Case No.  1:25-cv-00296 

United States District Court, Middle District of North Carolina  

Filed on April 18, 2025 

Net Power, Inc. (NPWR) Company Profile

Net Power is a clean energy technology company.  The Company's business focuses on the “Net Power Cycle,” which converts air into its components (oxygen, argon, and nitrogen). It combusts oxygen with natural gas, resulting in carbon dioxide and water.  CO2 gas then turns a turboexpander to generate electricity. In its investor presentations, the Company says “NPWR has developed and proven its oxy-fueled power technology (the ‘Net-Power Cycle’) to deliver clean, firm power.” 

At present, Net Power does not yet have an operational plant. Net Power operates a research facility at La Porte, Texas (called “La Porte” or the “Demonstration Plant”) which it uses to demonstrate the Net Power Cycle’s viability.  

Net Power, Inc.  (NPWR) Lawsuit Class Period

June 9, 2023 to March 7, 2025, inclusive. 

Shareholders who acquired Net power securities during the class period might be eligible to join the Net Power securities class action lawsuit. 

Allegations in the Net Power, Inc.  (NPWR) Lawsuit 

Net Power conducts research and equipment validation testing campaigns at La Porte as part of its efforts to develop its first utility-scale plant (called “SN1”). This project is called “Project Permian.” Because Net Power does not yet operate a utility-scale plant, its business and commercial prospects rely on Project Permian’s success and completion of SN1.    

Net Power represented to investors that it expected SN1 to be operational in 2026. In 2023, its cost estimate for Project Permian was $950 million; this ballooned to $1.1 billion in 2024.   

On November 14, 2023, Net Power issued  a press release announcing that because of “tightness in the global supply chain” it was “incorporating a 12-month cushion” into Project Permian’s schedule. This bumped project completion into the second half of 2027 or first half of 2028. Net Power’s stock dropped 18.54% on this news. 

The Complaint filed against Net Power alleges that the Company and its executives provided materially false and misleading statements about the Company’s financial projections and time to complete Project Permian, violating the Securities Exchange Act. The Complaint further alleges defendants' public statements misrepresented the capital needed to complete Project Permian; accordingly; defendants' projections regarding Project Permian were unrealistic and unfounded.  These misstatements allegedly inflated Net Power's share price, causing investors to purchase shares at an artificially high price. 

The Truth Emerges

On March 10, 2025, the Company issued   a press release stating it expected Project Permian’s “cost to be between $1.7 billion and $2.0 billion” – a substantial increase over previous estimates. It also announced the project would not come online earlier than 2029. Net Power attributed these changes to numerous site- and region-specific issues and owner costs.  

The Company further announced it ended 2024 with $533 million in cash, down from $580 million the previous quarter. It attributed this change to $42 million in expenses and cash outflows related to La Porte and SN1.  

Market Reaction

Investors reacted negatively to this news. Net Power’s stock dropped 31.46% within a day. 

Next Steps 

• Submissions for lead plaintiff are due June 17, 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. 

  To learn if you are eligible for recovery under the Net Power Inc lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.