Berman Tabacco Investigates Plug Power Inc. (PLUG) on Behalf of Investors Concerning Company's Announced Restatement of Financial Results

Boston, Massachusetts--(Newsfile Corp. - March 16, 2021) -  Berman Tabacco, a national law firm representing investors, is investigating potential violations of the federal securities laws by Plug Power Inc. ("Plug" or the "Company") (NASDAQ: PLUG), a maker of hydrogen fuel cells used in forklifts.

On March 2, 2021, before the market opened, Plug filed a Notification of Late Filing with the U.S. Securities and Exchange Commission ("SEC") stating that it could not timely file its annual report for the period ended December 31, 2020 because the Company was completing a "review and assessment of the treatment of certain costs with regards to classification between Research and Development versus Costs of Goods Sold, the recoverability of right of use assets associated with certain leases, and certain internal controls over these and other areas." The Company stated that "[i]t is possible that one or more of these items may result in charges or adjustments to current and/or prior period financial statements." On this news, the Company's stock price fell $3.68, or 7%, to close at $48.78 per share on March 2, 2021.

On March 16, 2021, after the market close, the Company filed a Form 8-K with the SEC disclosing that "[o]n March 12, 2021, management and the Audit Committee of the Board of Directors (the 'Audit Committee') of the Company, in consultation with KPMG LLP ('KPMG'), the Company's independent registered public accounting firm, determined that the Company's previously issued financial statements as of and for the years ended December 31, 2019 and 2018, and as of and for each of the quarterly periods ended March 31, 2020 and 2019, June 30, 2020 and 2019, and September 30, 2020 and 2019 (collectively, the 'Prior Period Financial Statements'), should no longer be relied upon due to errors in accounting primarily relating to (i) the reported book value of right of use assets and related finance obligations ('ROU Accounting'), (ii) loss accruals for certain service contracts, (iii) the impairment of certain long-lived assets, and (iv) the classification of certain expenses previously included in research and development costs ((i) through (iv) collectively, the 'Restatement Items')." The Company further stated that its "internal review is ongoing and the Company may identify further errors." In response to this news, shares of the Company were down in after-hours trading.

Currently, a class action lawsuit is pending in the United States District Court for the Southern District of New York captioned Beverly v. Plug Power Inc., et al., (Case No. 1:21-cv-02004) on behalf of persons and entities that purchased or otherwise acquired the Company's securities between November 9, 2020 and March 1, 2021, inclusive (the "Class Period").

The class action alleges claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"). In particular, the complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, it alleges that Defendants failed to disclose to investors: (1) that the Company would be unable to timely file its 2020 annual report due to delays related to the review of the classification of certain costs and the recoverability of the right to use assets with certain leases; (2) that the Company was reasonably likely to report material weaknesses in its internal control over financial reporting; and (3) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. The lead plaintiff deadline is May 7, 2021.

If you would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: http://www.bermantabacco.com/case/plug-power-inc/.

Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.

This notice may constitute attorney advertising.

Contact:

Jay Eng, Esq.
(800) 516-9926
Email: law@bermantabacco.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/77528