NEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who purchased the securities of Eos Energy Enterprises Inc. (“Eos Energy” or the “Company”) (NYSE: EOSE) between May 9, 2022 and July 27, 2023, both dates inclusive (the “Class Period”).
Eos Energy purports to design, develop, manufacture, and market zinc-based energy storage solutions for utility-scale, microgrid, and commercial and industrial applications. On March 9, 2022, Eos Energy issued a press release titled “Eos Energy Enterprises Secures Record-Breaking Order from Bridgelink Commodities, LLC,” touting, among other things, that Bridgelink “has committed to purchase 240 MWh of energy storage capacity provided by Eos’s Znyth™ zinc-based technology.”
The Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) 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 Energy products was not as secure as Eos Energy had led investors to believe; (iii) as a result, Eos Energy’s backlog was overstated; and (iv) such backlog overstatement negatively impacts Eos Energy’s ability to secure a loan from the U.S. Department of Energy.
On July 27, 2023, Iceberg Research 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,” which detailed that 62% of Eos Energy’s $535 million backlog is accounted for by Bridgelink and that Bridgelink’s assets were “recently seized by a creditor and sold in an auction.” On this news, the price of Eos Energy stock declined nearly 24%.
Then, later on July 27, 2023, Eos Energy responded to Iceberg Research’s report by telling investors that Eos Energy “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 [Eos Energy’s] backlog, reconfirmed today that it continues to build pipeline and is actively seeking financing for energy storage projects covered by Eos [Energy]’s multi-year Master Supply Agreement.” On this news, the price of Eos Energy stock declined more than 14%, further damaging investors.
Investors who purchased or otherwise acquired shares of Eos Energy should contact the Firm prior to the October 2, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
