Shares of Plug Power Inc. (PLUG) took a hit Friday as investors processed a double dose of news: a fresh lawsuit alleging the company wasn't straight about a massive government loan, and a big asset sale to raise cash. The timing is, let's say, interesting, coming just days before the company's fourth-quarter earnings and the first official week for incoming CEO Jose Crespo.

The Lawsuit: A $1.66 Billion Question Mark

Here's the core of the legal trouble. A proposed securities class action lawsuit claims Plug Power materially misled investors about its chances of getting—and using—a $1.66 billion loan guarantee from the U.S. Department of Energy. The loan was supposed to help finance up to six hydrogen production facilities.

The complaint, filed in New York federal court under the case name Ortolani v. Plug Power Inc., alleges the company overstated its prospects for securing the guarantee and its ability to actually build the projects. Investors who want to be the lead plaintiff in the case have until April 3, 2026, to step forward.

The lawsuit points to three specific stock drops it says followed the alleged misstatements:

• A 6.3% fall on October 7, 2025, after CEO Andrew Marsh and President Sanjay Shrestha abruptly left the company.
• A 3.4% drop on November 10, 2025, when Plug Power said it was suspending work related to the DOE loan.
• A steep 17.6% plunge on November 14, 2025, after a report suggested all six planned hydrogen facilities had been scrapped, potentially putting the entire $1.66 billion guarantee in jeopardy.

Selling Assets to Stay Afloat

On a separate track, Plug Power is moving to shore up its finances. The company has agreed to sell its Project Gateway site in New York. The deal is for at least $132.5 million in gross proceeds, and could go as high as $142 million.

This isn't just a one-off sale. It's the first step in a plan to monetize assets and generate more than $275 million to improve the company's liquidity. Plug Power says selling this site—which includes its ownership interest, land, and infrastructure—will help it streamline operations and refocus on its core business of hydrogen production and fuel cells.

In other words, they're selling something to get cash to keep the lights on and fund the main event.

The Stock's Technical Picture: Not Pretty

If you look at the charts, Plug Power's stock is having a rough time. It's trading well below its key moving averages: 8.6% below its 20-day average, 15.6% below its 50-day, and a stark 25.7% below its 100-day average. That's a clear bearish signal across short, medium, and longer-term timeframes.

The other indicators tell a slightly mixed story. The Relative Strength Index (RSI) is at 43.52, which is basically neutral—not oversold, not overbought. The MACD, however, is showing a slight bullish signal, hinting there might be room for a short-term bounce. But the overall trend, weighed down by the news and the price action, remains cautious.

What to Watch For: Earnings and Analyst Views

All of this is happening just before the company is set to report earnings on March 2, 2026. It will be a key early test for the new leadership. Here's what the analysts are forecasting:

• Earnings Per Share (EPS) Estimate: A loss of 10 cents. That's still a loss, but it's a big improvement from the loss of $1.65 per share in the same quarter last year.
• Revenue Estimate: $218.70 million, up from $191.47 million year-over-year.

The consensus rating on the stock among analysts is a Hold, with an average price target of $2.38. Recent analyst moves have been a mix:

• TD Cowen downgraded the stock to Hold and lowered its price target to $2.00 on January 9.
• Clear Street went the other way, upgrading to Buy on December 31, 2025, though it also lowered its target to $3.00.
• Canaccord Genuity maintained a Hold rating and a $2.50 price target on November 20, 2025.

Why ETF Investors Should Care

Plug Power isn't just any stock; it's a heavyweight in several exchange-traded funds (ETFs) focused on the hydrogen theme. That means its price swings can cause automatic buying or selling by these funds. Here's where it holds significant weight:

• Global X Hydrogen ETF (HYDR): 12.33% weight
• Research Affiliates Deletions ETF (NIXT): 1.44% weight
• Direxion Hydrogen ETF (HJEN): 6.90% weight

So, if money flows out of these ETFs, they have to sell a chunk of Plug Power to rebalance. If money flows in, they have to buy more. It creates a kind of feedback loop that can amplify the stock's moves.

On Friday, that move was down. Plug Power shares closed down 7.32% at $1.77.