Hyliion Faces Class Action Lawsuit Over Data Center Partnership Claims

The legal action, filed on behalf of those who purchased Hyliion securities between May 12 and June 23, 2026, follows a sharp decline in the company’s share price. The controversy erupted after a research report from Pelican Way Research questioned the legitimacy of a deal with VFG Holdings, LLC. Hyliion had previously touted the partnership as a significant milestone, claiming it would lead to the deployment of 250 KARNO Cores and generate approximately $133 million in revenue.

However, the report alleged that VFG Holdings was incorporated just months earlier, operated with only four employees, and lacked the financial backing to support such a large-scale project. Following the publication of these findings, Hyliion shares dropped 33.24% over two trading sessions, falling from $7.37 to $4.92. The lawsuit claims that management failed to disclose critical due diligence regarding the counterparty's operational capacity, leaving investors exposed to undisclosed risks. Lead attorney Joseph E. Levi noted that the complaint focuses on the company's obligation to provide transparent data when making specific performance promises to the market.