Key Takeaways:
Bloom Energy Corp. faces a securities class action alleging it routed Chinese-sourced scandium through intermediaries while telling investors its supply chain had no China exposure.
"The complaint raises serious questions about whether investors received accurate information about where Bloom Energy's critical fuel cell materials actually originated," Joseph E. Levi, founding partner at Levi & Korsinsky, said.
Shares fell $15.28, or 5.7 percent, to close at $254.29 on July 8, 2026, on heavy volume after Hunterbrook Media published a report titled "Bloom's Big Lie." The complaint, filed in the US District Court for the Northern District of California, covers purchases between February 27, 2025 and July 8, 2026. It alleges more than 154 metric tons of ceramic electrolyte membranes shipped from a Thailand-based subsidiary of a Chinese group between July 2024 and November 2025, plus nearly 300 drums of scandia powder from a Japanese supplier whose corporate network includes a Chinese zirconium-compounds trading arm.
The lead plaintiff deadline is September 28, 2026. Bloom, which has a market value of about $62 billion, told investors in a February 2025 Form 10-K that its supply chain "does not have significant exposure to China," a claim the complaint alleges was false.
The fuel cell maker, whose solid oxide technology uses scandium to stabilize zirconia ceramic electrolytes, reaffirmed 29 percent margin guidance on an April 30, 2025 earnings call and framed tariff exposure at roughly 100 basis points, citing a supply base it said was not dependent on China. A July 31, 2025 filing narrowed the expected fiscal 2025 gross margin impact from tariffs to about one percent. An October 28, 2025 Form 10-Q acknowledged China supplies 70 percent of rare earth metals used at tier 2 and tier 3 sub-assembly suppliers while maintaining the supply chain was not dependent on China.
The complaint also alleges 127 billion won ($83 million) in 2025 purchases by a South Korean electrolyte materials supplier from its Chinese parent's Hong Kong unit, and attributes more than 70 percent of Bloom's temperature sensor purchases to a single Chinese manufacturer over a roughly two-decade relationship. A Chinese sensor supplier told the Shenzhen Stock Exchange in November 2025 that Bloom had begun changing its supply-chain process, directing shipments to overseas suppliers including Kaori Heat Treatment in Taiwan and MTAR Technologies in India, according to the complaint.
Bloom, led by chief executive K. Sridhar, has deployed about 1.4 gigawatts of Energy Server systems across more than 1,000 sites in nine countries. The stock, which has climbed 135 percent this year and touched a record $351.28, closed at $204.39 on Aug. 31, down 3 percent. Mizuho Securities raised its rating to buy on July 30, and UBS holds a buy rating, with the 29-analyst consensus at accumulate and an average target of $275.08.
The lawsuit threatens to undercut the sourcing narrative that analysts built into their models, and a finding against Bloom could carry financial penalties and reputational damage. Investors who purchased shares during the class period have until September 28, 2026 to seek appointment as lead plaintiff.
This article is for informational purposes only and does not constitute investment advice.
