The legal action follows a sharp decline in Hyliion’s stock price triggered by a Pelican Way Research report. Published on June 23, 2026, the report questioned the financial and operational capacity of VFG Holdings to execute a non-binding letter of intent involving 250 KARNO Cores and 50 MW of data-center power. Shares dropped 17.2% immediately following the report, with a further 19.3% decline the following day, closing at $4.92.

Wolf Haldenstein Adler Freeman & Herz LLP, the firm representing the plaintiffs, contends that Hyliion’s management misrepresented the strength of its commercial pipeline during the class period. Investors seeking to participate in the litigation or provide information regarding the case are encouraged to contact the firm’s director of case analysis, Gregory Stone, at (800) 575-0735.