The scrutiny centers on a June 23 report from Pelican Way Research, which characterized Hyliion’s recent business trajectory as a failure to meet investor expectations. The report specifically questioned the validity of a letter of intent with VFG Holdings for 250 KARNO Cores, a deal valued at $133 million. Analysts pointed to the fact that the counterparty, VFG Tech Holdings, was incorporated only months prior, maintains a minimal digital footprint, and employs a staff of just four people.

Following the publication of these allegations, Hyliion’s share price tumbled $1.27, closing at $6.10. Pomerantz LLP is now seeking information from investors to determine if the company’s leadership engaged in securities fraud or breached fiduciary duties by overstating the project's viability. The firm, a veteran of securities class action litigation, is coordinating the inquiry through its New York office.