A class-action lawsuit has been filed against Hyliion Holdings Corp. on behalf of investors who purchased the company’s securities between May 12, 2026, and June 23, 2026. The suit alleges that Hyliion and some of its officers misled investors about a strategic partnership with VFG Holdings, LLC, to deploy KARNO Power Modules at data centers.
The lawsuit follows a June 23, 2026, report by Pelican Way Research, which claimed the VFG agreement was a sham and that VFG appeared to lack substance. Hyliion’s stock price fell significantly after the report.
The suit also alleges that company insiders sold shares shortly after the partnership was first announced. Investors have until October 27, 2026, to apply to serve as lead plaintiff.