Hyzon is under investigation by class-action law firm Schubert Jonckheer & Kolbe as it faces multiple lawsuits alleging improper business practices, particularly surrounding one of its apparent largest customers.

In late 2021, Hyzon announced a non-binding deal with Chinese company Shanghai Hongyun for 500 hydrogen-powered trucks. However, within months, activist investment firm Blue Orca published a short-seller report that accused Hyzon of misrepresenting its deal with the firm, which noted that Shanghai Hongyun was established only three days before the announcement. Since then, Hyzon has been named in a securities class-action lawsuit that alleges Shanghai Hongyun is a shell company.

In August 2022, Hyzon disclosed it was investigating “revenue recognition timing issues in China”, that would prevent it from filing its Q2 results for that year. This led to stock exchange Nasdaq notifying Hyzon of potential delisting unless a plan to regain compliance with listing rules was submitted and approved by 14 October. As of December 2022, the firm is still listed on the Nasdaq, although its stock price has collapsed by c.38pc from August.

The firm has also been accused of false and misleading statements about projected sales and revenue, both by the Blue Orca report and a class-action lawsuit filed in Delaware.

Schubert Jonckheer & Kolbe is investigating potential breaches of fiduciary duty in relation to the above allegations. In September this year, the firm announced it would investigate Plug Power, a green hydrogen technology firm, over allegations of false and misleading statements to investors and insider trading.

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Author: Polly Martin