The firm is currently scrutinizing whether Fervo adequately disclosed the risks associated with third-party transmission curtailment in its IPO filings. While the company’s May documents characterized such interruptions as merely "potential," management admitted during the Q2 earnings call that the issue had been under their observation for some time. This discrepancy between the initial risk assessment and the subsequent operational reality is the primary focus of the probe led by partner Reed Kathrein.

Investors who purchased shares at the $27 offering price have seen their holdings drop significantly, with the stock closing at $20.16 following the announcement. Hagens Berman is now seeking information from shareholders and potential whistleblowers to determine if the company and its leadership failed to meet federal securities law obligations. The investigation aims to uncover whether management possessed knowledge of the planned curtailments prior to the IPO, potentially leaving investors uninformed about the stability of the Cape Station GeoCluster.