The investigation stems from allegations published by Pelican Way Research, which characterized the agreement with VFG Holdings as a "meaningless deal." The report challenged the commercial substance of the transaction, noting that VFG Tech Holdings was incorporated only months before the announcement. Analysts pointed to a minimal digital footprint and a small staff as evidence that the startup lacked the capital or operational capacity to support such a significant order.

Because the VFG deal represented roughly one-third of Hyliion’s reported $400 million pipeline, the scrutiny centers on whether the company violated federal securities laws by inflating expectations. Johnson Fistel is currently reviewing these claims to determine if investors were provided with accurate information regarding the company's financial health and growth prospects. Those who purchased HYLN securities and incurred losses are being invited to discuss potential litigation options with the firm.