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Published November 5, 2024
Natural gas company New Fortress Energy is facing a class action lawsuit filed by investors who claim the Company delivered nothing but a well of empty promises. In early 2024, New Fortress executives issued a gushing annual fiscal outlook which suggested the Company would double key financial metrics and close out key projects. When investors learned these projections were just hot air, New Fortress stock plummeted 23% overnight, prompting investors to file suit.
According to that lawsuit, in February 2024, New Fortress executives issued a press release describing the Company’s financial position. In that release, the Company suggested it was nearing completion of key projections in Brazil and Puerto Rico and was close to winning a major project in Mexico. The Company also suggested it was on track to double key financial metrics such as revenue in 2024, but investors allege that executives made these statements while concealing negative facts about these projects’ viability and timetables.
The truth emerged later that year, when New Fortress issued a press release revealing that earnings had slowed to a trickle and slashed its guidance for the second half of the year. In particular, it announced delays for the Brazil, Puerto Rico, and Mexico projects, all of which would harmed company profits.
Shares cratered overnight following this news, and shareholders who lost money on that drop are now joining the lawsuit.