Bloom Energy shares fell 5.7% as class action targets scandium sourcing

Bloom Energy faces a securities class action over its reliance on Chinese scandium, with shares down 5.7 percent after a July 8 report.

"Timely disclosure of material developments is fundamental to fair and efficient markets. Here the complaint alleges that supply chain assurances were repeated across more than a year of filings and public appearances while the underlying sourcing was allegedly different," Joseph E. Levi, a partner at Levi & Korsinsky, said.

The lawsuit, filed in the US District Court for the Northern District of California, covers investors who bought Bloom Energy securities between Feb. 27, 2025 and July 8, 2026. Kaplan Fox & Kilsheimer LLP also announced the action on behalf of affected shareholders. The complaint alleges Bloom Energy obtained scandium through intermediaries who sourced the metal from China and understated the extent of that reliance throughout the class period.

On July 8, at approximately 1 p.m. EST, Hunterbrook Media published a report alleging the company was reliant on Chinese scandium, citing global trade data, Chinese corporate filings, satellite imagery and messages with suppliers in China. Bloom Energy shares fell $15.28, or 5.7 percent, to close at $254.29 on unusually heavy volume that day, according to Levi & Korsinsky.

Scandium is a key input in Bloom's solid oxide fuel cells, which the company sells to data centers and utilities seeking on-site power. The metal's supply chain has become a sensitive issue as Washington tightens restrictions on critical minerals from China, making sourcing disclosures material to investors.

Investors who purchased during the class period may move the court no later than Sept. 28, 2026 to serve as lead plaintiff. Lead plaintiffs are typically investors with the largest documented losses; appointment does not increase individual recovery but grants oversight of how the case is run. Eligibility is based on purchase timing, not whether shares are still held, and class actions are handled on a contingency basis with any attorneys' fees subject to court approval.

The litigation adds legal and reputational risk to Bloom Energy, whose supply chain has drawn scrutiny as US-China trade tensions persist. A settlement or adverse ruling could weigh on the company's valuation and future fundraising ability. Investors will watch for the court's lead plaintiff appointment and any company response to the allegations in the coming months.

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