Investigation of Plug Power, Inc.
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Plug Power, Inc. (PLUG) Misled Shareholders Regarding its Internal Controls Over Financial Reporting
On November 9, 2020, Power Plug reported its third quarter 2020 financial results in a letter posted on its website. The same day, Power Plug filed its quarterly report on Form 10-Q for the period ended September 30, 2020, affirming its previously reported financial results. The Company also noted that its “disclosure controls and procedures are effective” and that “no changes in the Company’s internal controls over financial reporting … occurred during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal controls over financial reporting.”
On February 25, 2021, Plug Power released its fourth quarter and full year 2020 financial results on its website. Notwithstanding, on March 2, 2021, Plug Power filed a Notification of Late Filing with the SEC stating that it could not timely file its annual report for the period ended December 31, 2020. Specifically, 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, Plug Power’s stock price fell $3.68, or 7%, to close at $48.78 per share on March 2, 2021. The price continued to decline over 19% over the next three trading sessions, to close at $39.30 per share on March 5, 2021.