10 Stocks Nosedive, Defying Broader Optimism

5. Plug Power Inc. (NASDAQ:PLUG)

Plug Power Inc. (PLUG) fell by 9.84 percent on Tuesday to end at $2.20 apiece following news that it is being subject to an investigation concerning potential breaches of fiduciary duties by certain directors and officers of the company.

The investigation, launched by a law firm representing current long-term investors in Plug Power, stems from a lawsuit filed against Plug Power Inc. over alleged violations of securities laws. The inquiry is focused on whether specific company directors are liable for actions related to the claims outlined in the lawsuit.

Filed in the US District Court for the Northern District of New York, the complaint accused the company of making false or misleading statements and failing to disclose key issues such as allegations that Plug Power overstated its ability to mitigate the negative impacts of supply chain constraints and material shortages on its hydrogen business.

The suit also highlighted concerns about the sufficiency of the company’s cash reserves to fund operations, delays in its green hydrogen production facility build-out, and challenges in securing external funding to support its growth initiatives.