The lawsuit, filed as Nevins v. Bloom Energy Corporation in the Northern District of California, accuses the energy firm and its top executives of violating the Securities Exchange Act of 1934. According to the complaint, Bloom Energy allegedly misled stakeholders by downplaying its dependence on scandium obtained through intermediaries linked to China. This rare earth metal is essential for stabilizing the zirconia-based ceramic electrolytes used in the company’s solid oxide fuel cells.
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Bloom Energy Faces Class Action Over Alleged Chinese Scandium Reliance
Investors who purchased Bloom Energy Corporation securities between February 27, 2025, and July 8, 2026, have until September 28 to seek lead plaintiff status in a federal class action lawsuit. The litigation follows allegations that the company obscured its reliance on Chinese-sourced scandium, a critical component for its fuel cell systems.
Scrutiny intensified on July 8, 2026, following the publication of a Hunterbrook Media report titled "Bloom’s Big Lie." The report claimed that trade data, corporate filings, and supplier communications revealed four distinct supply chain routes funneling Chinese scandium into Bloom’s Delaware plant and secondary manufacturing hubs in Thailand, Japan, and South Korea. Following these disclosures, Bloom Energy stock dropped nearly 6%. The law firm Robbins Geller Rudman & Dowd LLP is managing the litigation, representing investors seeking to recover losses linked to the firm's alleged misrepresentations regarding its operational supply chain.
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