Bloom Energy investors face Sept. 28 deadline in scandium fraud suit

Bloom Energy Corp. investors have until Sept. 28 to seek lead plaintiff status in a securities fraud class action alleging the fuel-cell maker concealed its reliance on Chinese-sourced scandium, a rare earth metal used to stabilize the zirconia-based ceramic electrolyte in its solid oxide fuel cells.

The lawsuit, filed in the U.S. District Court for the Northern District of California, covers purchases between Feb. 27, 2025 and July 8, 2026. It alleges Bloom obtained scandium through intermediaries who sourced the metal from China, understating its supply-chain dependence despite prior statements that it was not dependent on China for the material. The complaint charges Bloom and certain top executives with violations of the Securities Exchange Act of 1934.

On July 8, short-seller Hunterbrook Media published a report titled "Bloom's Big Lie," alleging the company relied on Chinese scandium. Hunterbrook said it traced four China-linked routes into Bloom's supply chain — scandium oxide shipped directly to its Delaware plant, plus scandium-bearing ceramics and powders flowing through intermediaries in Thailand, Japan and South Korea. The report drew on global trade data, Chinese corporate filings, satellite imagery and messages with Bloom's suppliers in China. Bloom's shares fell $15.28, or 5.7%, to close at $254.29 that day.

The lead plaintiff, typically the investor with the largest financial interest in the case, directs litigation strategy and can influence settlement decisions. Courts regularly appoint individual investors, not only institutions, to the role. Investors who do not seek appointment can still share in any recovery as absent class members.

Several firms are soliciting claimants, including Kirby McInerney LLP, Faruqi & Faruqi LLP, Robbins Geller Rudman & Dowd LLP and the Law Offices of Frank R. Cruz. The case is captioned Nevins v. Bloom Energy Corporation, No. 26-cv-07944.

Bloom designs, manufactures and installs solid oxide fuel cell systems for on-site power generation in the U.S. and internationally, with data-center operators among its fastest-growing customers. Scandium is a critical input for the company's electrolyte chemistry, and China controls the bulk of global supply of the metal, making supply-chain transparency a material issue for investors.

The lawsuit adds legal and reputational risk to a company whose stock has climbed sharply this year on demand for its fuel cells from data-center operators. A finding of liability could expose Bloom to damages tied to the single-day decline, while the disclosure raises questions about supply-chain resilience given China's dominance of global scandium production. Investors will watch for the court's lead plaintiff appointment and any company response to the Hunterbrook allegations in the coming weeks.

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