Bloom Energy faces fraud lawsuit after shares plunge 40%

Glancy Prongay Wolke & Rotter LLP filed a securities fraud class action against Bloom Energy Corporation on July 30, with a Sept. 28 lead plaintiff deadline. The stock has fallen 40.5% in a month despite record Q2 revenue of $1.07 billion.

Bloom Energy shares fell 40% in a month as Glancy Prongay filed a securities fraud class action against the fuel cell maker.

The complaint, filed July 30 in Los Angeles, alleges Bloom Energy made materially misleading statements about its business, operations, and prospects, according to the firm. Investors who bought Bloom Energy securities and suffered losses have until Sept. 28 to seek lead plaintiff status.

"GPWR is a premier law firm with decades of experience representing investors and consumers in securities litigation and other complex class action litigation," the firm said. GPWR was named one of Law360's Securities Groups of the Year and ranked second in total investor recoveries by Institutional Shareholder Services Securities Class Action Services in 2025.

Bloom Energy closed at $163.75, down 24.9% over the past week and 40.5% in a month, even after posting record Q2 revenue of $1.07 billion and raising full-year guidance to $3.9 billion to $4.2 billion, roughly doubling year over year. The stock swung 11% in both directions after the earnings release, reflecting the volatility that has defined the AI power trade. A short-seller report accusing the company of hiding Chinese supplier reliance knocked the stock down 5.6% on July 8, and Rosen Law Firm has opened a separate class-action inquiry.

The stock carries a beta of 3.7, meaning drawdowns hit retail accounts hard. Insiders have logged 27 recent transactions with net direction selling. Wall Street analysts still peg fair value at $286.20, implying 74.8% upside from current levels, while Morningstar raised its fair value 15% after Bloom's 2.8 GW Oracle deal for AI data center power. The forward P/E of 84 leaves little cushion if hyperscaler orders slip or the short-seller narrative gains traction.

CEO K.R. Sridhar told investors "Bloom is now a standard for AI onsite power," and management guides for 2026 revenue of $3.9 billion to $4.2 billion. Peers Vertiv and GE Vernova have delivered steadier price action in the AI power trade, while Bloom's composite sentiment index reads a bearish 34.42, weighed down by the Reddit sentiment collapse from 78 to 18 and insider selling.

The lawsuit adds legal risk to a stock already under pressure from short-seller scrutiny and insider selling. The Sept. 28 lead plaintiff deadline and the outcome of the Rosen Law inquiry will determine whether the litigation gains traction, while the Brookfield joint venture's conversion of backlog into new hyperscaler contracts remains the key fundamental event to watch.

This article is for informational purposes only and does not constitute investment advice.