Key Takeaways:
Amprius Technologies Inc. (NYSE: AMPX) is being investigated for potential securities law violations by law firm Block & Leviton, an action prompted by a short-seller report that sent shares down nearly 6% over two trading days. The firm is seeking to recover losses for investors following allegations of fraud and misrepresentation by Amprius.
"Block & Leviton is investigating whether the Company committed securities law violations and may file an action to attempt to recover losses on behalf of investors who have lost money," the firm said in a statement. The investigation targets investors who hold the common stock and have seen their shares decline in value.
The probe follows a May 20 report from Manatee Research that accused the battery developer of fabricating its growth story. The short seller alleged Amprius uses a network of fraudulent or failing manufacturing partners, including a Korean partner, Eurocell, whose factory was seized amid fraud charges. Manatee also claimed at least $29 million in orders are illusory and pointed to a significant undisclosed related-party transaction with a Chinese supplier, Berzelius, which is allegedly connected to Amprius's founder, Kang Sun.
These allegations stand in stark contrast to the company's performance over the past year, where the stock had soared roughly 490% before the report's release. The short report also highlighted that company insiders sold more than $79 million in stock between November 2025 and May 2026, while the company relied on "bill-and-hold" accounting to recognize revenue for batteries it had not yet shipped.
Manatee Research's investigation claims Amprius’s manufacturing network is a “Potemkin village.” It alleges that besides Eurocell's legal troubles in Korea, Amprius's U.S. partner, Nanotech Energy, has a history of unfulfilled production plans. The report further alleges that a key Chinese supplier, Berzelius, which accounts for 36% of Amprius's 2025 cost of revenue, is 90% owned by Amprius founder and board member Kang Sun through a chain of holding companies.
The report also raised concerns about CEO Tom Stepien, citing a previous lawsuit from his time at Primus Power, where he was accused of fraudulent misrepresentation to secure a $1.5 million investment.
The investigation by Block & Leviton adds significant legal and financial risk for Amprius, with the outcome potentially leading to substantial liabilities. Investors will be watching for the company's official response to the allegations and the court's decision on whether to proceed with a class-action lawsuit.
This article is for informational purposes only and does not constitute investment advice.
