Eos Energy Enterprises, Inc. (NASDAQ: EOSE) Securities Fraud Class Action

Eos investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than October 2, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Eos Energy Enterprises, Inc. (“EOS”) (NASDAQ: EOSE) securities between May 9, 2022 and July 27, 2023, both dates inclusive (the “Class Period”). 

Case Background:
The Class Period begins on May 9, 2022 when Eos issued a press release titled “Eos Energy Enterprises Secures Record-Breaking Order from Bridgelink Commodities, LLC”, a deal with purportedly had a value of up to $150 million.  

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Bridgelink 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) as such, Eos’s backlog was overstated; (4) such overstatement negatively impacts Eos’s ability to secure a loan from the Department of Energy; and (5) as a result of the foregoing, Defendants’ positive statements about the company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. 

On July 27, 2023, during market hours, market analyst Iceberg Research (“Iceberg”) published a report identifying several issues with Eos. Iceberg alleged, among other things, that the fate of Eos “rests on its touted 2.2 GWh energy storage system backlog,” and that the backlog “is fake.” Specifically, the report indicated that “Bridgelink Commodities, accounts for half of EOS’s backlog” 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 also 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.”  Following this news, Eos’s stock price fell $0.83 per share, or 23.9%, to close at $2.65 per share on July 27, 2023.

Later that same day, after the market closed, Eos issued a press release attempting to address the issues that Iceberg reported. 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.”  Following this news, Eos’s stock price fell $0.39 per share, or 14.7%, to close at $2.26 per share on July 28, 2023.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.