New Fortress Energy Investors Urged to Join Class Action in NY
- A class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of investors who acquired New Fortress Energy securities during a specific period.
- The lawsuit claims that New Fortress misled investors about the progress of its Fast LNG projects, particularly concerning delays that significantly impacted the company’s financial expectations.
- Investors are encouraged to participate in the lawsuit, which is a response to a major drop in share prices following disappointing financial results.
In October 2024, a class action lawsuit was filed in the U.S. District Court for the Southern District of New York regarding New Fortress Energy Inc. This legal action targets investors who purchased the company’s securities from February 29 to August 8, 2024. The lawsuit stems from disappointing financial results announced on August 9, where the company reported adjusted EBITDA significantly below expectations, coupled with a lowered guidance for the remainder of the year. The financial setback has been attributed to delays in the launch of the FLNG 1 project. The class action asserts that New Fortress failed to adequately inform investors about the actual progress of its Fast LNG projects, specifically regarding the anticipated in-service date for FLNG 1. Originally slated for completion by March 2024, these delays reportedly resulted in substantial financial losses for the company, estimated at up to $150 million per quarter. This failure to disclose critical operational challenges led to a sharp decline in the company’s stock price, which fell by approximately 23.6% in the immediate aftermath of the announcement. With a deadline set for November 18, 2024, affected investors are being urged to apply to become lead plaintiffs in the lawsuit. This class action not only seeks to represent the interests of aggrieved investors but also holds the potential for financial recovery reflecting the damages suffered due to the alleged misleading information. Kirby McInerney LLP, the law firm representing the plaintiffs, specializes in securities litigation and has a history of securing substantial recoveries for shareholders. Their involvement indicates a serious legal challenge for New Fortress Energy as the company navigates the ramifications of the lawsuit and its impact on investor relations.