New Fortress Energy Inc. faces a proposed class action in New York federal court, where investors allege that the natural gas company and its top executives misled them on growth and revenue projections tied to the company’s LNG projects. Plaintiff Taylor Anderson claims that New Fortress concealed significant delays and escalating costs on its Fast LNG (FLNG) project, which led to a substantial drop in the company’s stock price when the issues surfaced.
New Fortress investor class action : Allegations of Misleading Financial Projections
The lawsuit, filed Friday, accuses New Fortress, its CEO Wesley Robert Edens, CFO Christopher Guinta, and executive officer Andrew Dete of presenting an overly optimistic financial outlook from December 12, 2022, to August 8, 2024. During this period, New Fortress allegedly assured investors of strong growth and profitability based on its goal to double metrics in 2024 and achieve operational status for the FLNG project in Mexico by March 2024.
According to the complaint, executives claimed the Fast LNG project would significantly boost revenue by providing gas and power to long-term customers, yet concealed delays that were costing the company nearly $150 million per quarter. The complaint argues that New Fortress gave a “false impression” that the project was on track, which later proved unfounded.
Stock Drops Following Disclosure of Project Delays
The lawsuit states that the truth about FLNG project delays began to emerge in February 2024, causing a slight drop in stock from $35.15 on February 29 to $32.02 by March 4. However, the company allegedly continued to mislead investors about the project timeline and profitability. The complaint further claims that New Fortress finally disclosed the full scope of delays and financial impacts in August, revealing a second-quarter adjusted EBITDA of $120 million — well below the projected $275 million — and cutting its guidance for the remainder of 2024. This announcement led to another drop, with New Fortress shares falling from $17.02 on August 8 to $13 on August 9. By Tuesday, the stock was trading around $8.66 per share.
New Fortress investor class action : Legal Representation and Next Steps
Anderson is represented by Jeremy A. Lieberman, J. Alexander Hood II, and Thomas H. Przybylowski of Pomerantz LLP, as well as Peretz Bronstein of Bronstein Gewirtz & Grossman LLC. The case seeks to represent all investors who purchased New Fortress securities during the specified period, alleging that they suffered financial losses due to the company’s misleading information.
