The litigation centers on claims that Innventure misled shareholders regarding an arrangement with DarkNX, which was touted as a 300MW AI data center project in Ontario, Canada. Throughout the class period between November 17, 2025, and August 13, 2026, the company repeatedly assured the market that its NeuCool technology deployment was proceeding as expected. However, the narrative collapsed after the company admitted the site for the project was no longer available.

Skepticism first emerged on May 28, 2026, when Morpheus Research published a report alleging the deal was a fabrication. The report cited former employees who claimed they had never heard of DarkNX and that the project lacked both funding and physical existence. Between the date of that report and the mid-August disclosure, Innventure shares lost 74% of their value. Hagens Berman partner Reed Kathrein stated the firm is investigating whether management intentionally or recklessly misled investors to drive interest in its Accelsius subsidiary. The deadline for investors to serve as lead plaintiff is October 27, 2026.