Plug Power's stock plummeted 5% on Wednesday, in a session that saw broader market optimism. The sharp decline came after news surfaced that the company is facing an investigation concerning potential breaches of fiduciary duties by certain directors and officers.

The investigation stems from a lawsuit filed against Plug Power, accusing the company of making false or misleading statements and failing to disclose key issues. Specifically, the lawsuit alleges that Plug Power overstated its ability to mitigate supply chain constraints and material shortages impacting its hydrogen business. It also raised concerns about the sufficiency of the company's cash reserves, delays in its green hydrogen production facility build-out, and challenges in securing external funding for growth initiatives.

While Plug Power is considered a promising investment in the hydrogen and fuel cell industry, concerns over its transparency and potential legal issues have weighed heavily on investor sentiment, leading to the significant stock drop on Wednesday.