The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of all persons or entities who acquired Eos Energy Enterprises, Inc. (“Eos” or the “Company”) (NASDAQ: EOSE) securities from May 9, 2022 through July 27, 2023 (the “Class Period”). Investors have until October 2, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On July 27, 2023, 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.” 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.” Iceberg elaborated that “Bridgelink Commodities accounts for half of EOS’s backlog by MWh or ~62% ($331 million) of its total dollar value” but that Iceberg “decided to dig into this customer’s background and uncovered a group whose assets were recently seized by a creditor and sold in an auction.” Iceberg added that “[w]e wonder how EOS can still present Bridgelink as a major client” and that “EOS continues to include Bridgelink in its backlog, and is likely to have made the same representations when applying for the Department of Energy loan.” Iceberg concluded that its findings “completely undermine the authenticity of EOS Energy’s promoted backlog.” On this news, the price of Eos shares declined by $0.83 per share, or approximately 23.85%, from $3.48 per share to close at $2.65 on July 27, 2023.
On July 27, 2023, Eos issued a press release titled “Eos Energy Enterprises Provides Preliminary Results & Issues Statement Regarding Its Customer Commitments and Backlog.” Therein, the Company attempted to address the issues that Iceberg identified. Eos stated that “[t]he Company believes that its customer, Bridgelink Commodities, LLC, is a separate legal entity which is not implicated in the legal matters highlighted in today’s statements” and that “[t]his customer, representing 45% of the Company’s backlog, reconfirmed today that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos’s multi-year Master Supply Agreement.” Eos also stated that “[t]he Company continues to progress through the Department of Energy (DOE) Loan Programs Office’s (LPO) process for its Title XVII loan and is awaiting a conditional approval decision which may be taking longer due to changes from the recent Interim Final Rule announced in May.” On this news, the price of Eos shares declined by $0.39 per share, or approximately 14.72%, from $2.65 per share to close at $2.26 on July 28, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Bridgelink Commodities, LLC (“Bridgelink”) is connected to a group whose assets were seized by a creditor and sold in an auction; (ii) as such, Bridgelink’s commitment and ability to purchase Eos products was not as secure as Eos had led investors to believe; (iii) thus, Eos’s backlog was overstated; and (iv) that such overstatement negatively impacts Eos’s ability to secure a loan from the Department of Energy.
If you purchased or otherwise acquired Eos securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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