Hyliion told investors its VFG data center deal was a “non-binding” letter of intent, but the securities class action alleges that qualifier did not disclose what plaintiffs say mattered most: the counterparty was incorporated on January 5, 2026, appeared to have four employees, and had no identifiable funding history. HYLN shares lost $2.45 per share across two sessions.

NEW YORK, Sept. 3, 2026 /PRNewswire/ — SueWallSt notifies investors in Hyliion Holdings Corp. (NYSE: HYLN) that a securities class action has been filed on behalf of shareholders who purchased securities between May 12, 2026 and June 23, 2026. Submit your information now. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

HYLN closed at $7.37 on June 22, 2026, dropped $1.27 to $6.10 on June 23, 2026, then fell another 19% to $4.92 on June 24, 2026, a cumulative decline of $2.45 per share, or 33.24%. The letter of intent at issue carried roughly $133 million of the Company’s disclosed $400 million in potential revenue. The lead plaintiff deadline is October 27, 2026.

What the Company Disclosed

SEC filings and the May 12, 2026 first quarter results stated that Hyliion and VFG Holdings, LLC had entered a non-binding letter of intent, that the parties “intend to pursue” deployment of up to 250 KARNO Cores, or 50 megawatts, over five years, and that the arrangement remained “subject to the execution of a definitive purchase agreement.” Disclosure language indicated VFG “develops turnkey data center solutions, including power infrastructure, compute systems, site development, and financing.”

What Plaintiffs Allege Was Missing

The complaint challenges the adequacy of that disclosure, contending the standard non-binding and forward-looking qualifiers said nothing about the counterparty itself.

Disclosure Gaps Alleged

• No disclosure of the counterparty’s alleged headcount of four employees, or its “barely functioning website,” as later reported by a third-party research firm.
• No disclosure of any funding history or capital resources supporting a proposed transaction of approximately $133 million.
• No disclosure of what evaluation, if any, the Company performed regarding the counterparty’s operational and development capability.
• No quantified statement, plaintiffs allege, that roughly one-third of the $400 million pipeline figure rested on this single non-binding letter of intent.

Why Generic Warnings May Not Protect

The action asserts that a boilerplate “non-binding” label does not cure the omission of specific, known counterparty facts, and notes that after the June 23, 2026 research report the Company did not publicly rebut the findings, instead raising 2026 revenue guidance 50% from $10 million to approximately $15 million on August 12, 2026 while acknowledging that most customer interest was “not yet reflected in LOIs or purchase contracts.”

“Generic risk factor language cannot substitute for disclosing specific, known problems that are already affecting a company’s operations. Here the complaint asserts investors were told a partnership was non-binding, but not that the counterparty was months old with four employees and no funding history behind a $133 million opportunity.” — Joseph E. Levi, Esq.

Find out if you might qualify to recover losses or call (888) SueWallSt.

WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the HYLN Lawsuit

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 announced data center partnership with VFG Holdings, and the reliability of a commercial pipeline roughly one-third of which consisted of a non-binding letter of intent with a newly formed entity, during the Class Period. When a third-party research report questioning the VFG 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: Who are the defendants named in the HYLN lawsuit? A: The complaint names Hyliion Holdings Corp. and individual defendants including senior executives who signed SEC filings, made public statements, or certified financial disclosures under Sarbanes-Oxley.

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: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.

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.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

Attorney Advertising. Prior results do not guarantee similar outcomes.

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SOURCE SueWallSt.com