Law Firms Seek Lead Plaintiff in Class Action Lawsuit Against Venture Global

Several law firms are urging a lead plaintiff to come forward in a class action lawsuit filed against U.S.-based liquefied natural gas (LNG) export project developer, Venture Global.

The lawsuit, which has been filed in the United States District Court for the Southern District of New York, targets Venture Global on behalf of investors who purchased Venture common stock during its initial public offering (IPO). Shareholders have until April 18, 2025, to request to be appointed as lead plaintiff in the case.

The law firms allege that investors bought Venture’s stock based on what they claim is false and misleading information provided by the company. Venture Global had repeatedly expressed confidence in its ability to use its innovative approach to deliver LNG to the global market efficiently and cost-effectively.

However, soon after Venture’s IPO on January 27, 2025, one of its target customers, TotalEnergies, publicly announced its rejection of a long-term supply contract for LNG from Venture due to a lack of trust.

TotalEnergies CEO, Patrick Pouyanne, revealed that he had concerns about the pricing of the LNG offered by Venture, stating, “The price of the LNG was so low… I said to my colleague, ‘How is it possible to pay $1 less than the rest of the market? What is the trick?’”

Following TotalEnergies’ announcement, Venture Global’s stock price experienced a significant decline, dropping from $19.68 per share on February 5, 2025, to $17.48 per share the next day. As of the latest trading data, the stock continues to trade below its IPO price at around $16 per share.

Responding to TotalEnergies’ concerns, Venture Global defended its pricing strategy on social media, emphasizing its commitment to innovation and efficiency in the LNG market.

Despite these challenges, Venture Global recently announced plans to expand its Plaquemines LNG plant by adding 24 trains, requiring an additional $18 billion investment. This expansion aims to increase the plant’s capacity to over 45 million tonnes per annum (mtpa).

The class action lawsuit seeks to compensate investors for the damages caused by the alleged false and misleading statements made by Venture Global. The complaint contends that the company’s failure to disclose legal challenges from existing clients such as BP and Shell, along with delays in supply contracts, misled investors about the company’s prospects.

As the legal proceedings progress, investors are closely monitoring the developments surrounding Venture Global’s operations and the outcome of the class action lawsuit.