Allegations center on Hyliion’s alleged failure to evaluate or disclose whether a four-employee counterparty had the financial resources and development capability to execute a proposed $133 million KARNO deployment.

NEW YORK, Sept. 9, 2026 /PRNewswire/ — Levi & Korsinsky, LLP reminds purchasers of Hyliion Holdings Corp. (NYSE: HYLN) securities that a securities class action has been filed on behalf of shareholders who acquired shares between May 12, 2026 and June 23, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

HYLN closed at $7.37 per share on June 22, 2026 and at $4.92 per share on June 24, 2026, a two-day decline of $2.45 per share, or 33.24%. Motions for lead plaintiff must be filed with the Court by October 27, 2026.

The Alleged $133 Million Counterparty Gap

A non-binding letter of intent converts into revenue only if the counterparty can finance, permit, and build the sites where equipment is deployed. The action contends that Hyliion announced a “new data center partnership” with VFG Holdings, LLC covering up to 250 KARNO Cores, or roughly 50 megawatts of generation capacity over five years, without disclosing what evaluation, if any, had been performed of VFG’s operational capabilities, financial resources, or development experience.

Deployment Capacity Behind the 250-Core Commitment

On June 23, 2026, Pelican Way Research published a report questioning the commercial viability of the arrangement, reporting that VFG had been incorporated only on January 5, 2026, appeared to have four employees and a “barely functioning” website, and had no publicly available funding history. As pleaded, that information was directly at odds with prior representations about the strength and credibility of the disclosed commercial pipeline.

Alleged Execution Risk by the Numbers

• Up to 250 KARNO Cores, approximately 50 megawatts, over five years under a non-binding letter of intent
• Approximately $133 million in potential revenue, roughly one-third of the more than $400 million pipeline disclosed at “today’s current pricing”
• Counterparty incorporated on January 5, 2026, roughly four months before the partnership was announced
• Four employees and no identified funding history reported for the counterparty
• Q1 2026 revenue of $2.8 million with a gross margin gain of $0.2 million, alongside reaffirmed full-year guidance of approximately $10 million
• Forecast net spending of just over $50 million and a projected year-end cash and investment balance of approximately $100 million

“The complaint raises serious questions about whether investors received accurate information about the diligence behind a partnership that represented roughly one-third of a disclosed pipeline. Whether a counterparty could actually finance and build the proposed deployments is exactly the kind of information shareholders weigh.” — Joseph E. Levi, Esq.

Submit your information now or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors. Investors who suffered losses have until October 27, 2026 to seek appointment as lead plaintiff.

Frequently Asked Questions About the HYLN Lawsuit

Q: How much did HYLN stock drop? A: Shares fell approximately 33.24%, a decline of $2.45 per share, after a research report questioned the commercial viability of the announced VFG Holdings data center partnership and the credibility of the Company’s disclosed commercial pipeline. Investors who purchased shares during the Class Period at artificially inflated prices and suffered losses may be eligible to seek compensation.

Q: What specific misstatements does the HYLN lawsuit allege? A: The complaint alleges Hyliion Holdings Corp. made materially false or misleading statements regarding the credibility and commercial viability of its “new data center partnership” with VFG Holdings and the strength of a pipeline that included a non-binding letter of intent representing approximately $133 million in potential revenue. When the June 23, 2026 research report questioning that partnership was published, the stock price declined sharply.

Q: What court was the HYLN class action filed in? A: The case was filed in the United States District Court for the Western District of Texas, Austin Division, governed by the Private Securities Litigation Reform Act of 1995.

Q: What do HYLN investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What documents do I need to to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: What if I already sold my HYLN shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution. Timing depends on the court schedule, case developments, and whether the matter is dismissed, settled, or litigated further.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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