Eos Energy Enterprises, Inc. (EOSE) Made Misleading Statements Regarding its Financial Prospects
A shareholder filed a class action against Eos Energy Enterprises, Inc. (NASDAQ: EOSE) on behalf of persons and entities that purchased or acquired EOS securities between May 9, 2022 and July 27, 2023. Eos claims it designs, develops, manufactures, and markets zinc-based energy storage solutions for utility-scale, microgrid, and commercial & industrial applications.
According to the complaint, Eos was originally incorporated in Delaware in June 2019 as a special purpose acquisition company named B. Riley Principal Merger Corp. II (“B. Riley”). Upon the completion of the business combination of B. Riley and Eos Energy Storage, LLC on November 16, 2020, the Company changed its name to Eos Energy Enterprises, Inc.
On July 27, 2023, during market hours, Iceberg Research (“Iceberg”) published a report titled “62% Of $Eose’s Backlog Is With Financially Distressed Bridgelink Whose Renewable Energy Assets Were Foreclosed And Auctioned Off In May.” Therein, Iceberg alleged that, while the fate of Eos “rests on its touted 2.2 GWh energy storage system backlog, which EOS valued at $535 million at the end of March 2023,” the backlog “is fake.” On this news, the Company’s stock price fell $0.83 per share, or 23.9%, to close at $2.65 per share on July 27, 2023. That same day, after the market closed, Eos attempted to address the statements made by Iceberg. On this news, the Company’s stock price fell $0.39 per share, or 14.7%, to close at $2.26 per share on July 28, 2023.
The complaint alleges that during the class period defendants failed to disclose to investors that: (1) Bridgelink Commodities, LLC is connected to a group whose assets were seized by a creditor and sold in an auction; (2) as such, Bridgelink’s commitment and ability to purchase Eos products was not as secure as Eos had led investors to believe; (3) consequently, Eos’s backlog was overstated; and (4) such overstatement negatively impacts Eos’s ability to secure a loan from the Department of Energy.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Eos Energy Enterprises, Inc. Shareholders who want to act as lead plaintiff for the class should contact the firm. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.