Fluence Stands by its Work on the Diablo Plant, and Will Vigorously Pursue the Payments it is Owed for its Work and Dispute the Allegations in the Counterclaim Filed by the Operator of the Plant

Rhea-AI Summary

Fluence Energy, Inc. (FLNC) faces a counterclaim from Diablo Energy Storage, LLC related to a contract dispute. The counterclaim was in response to Fluence's original claim against Diablo for non-compliance with the contract terms. Fluence is confident in its position and plans to vigorously pursue its claims while defending against the counterclaim.

Insights

Legal Expert

The legal dispute between Fluence Energy, Inc. and Diablo Energy Storage, LLC involves a contractual disagreement that has escalated to a counterclaim situation. Such legal issues can have significant financial implications for the involved parties. The resolution of this dispute will determine if Fluence can recover the alleged unpaid balance and related damages, which could affect the company's financial statements and cash flow.

From a legal standpoint, the merit of the counterclaim will be assessed through litigation or settlement. Investors should monitor the progress of this case as legal expenses and potential settlement costs could impact Fluence's profitability. Moreover, if the counterclaim is found to have merit, it may indicate deficiencies in Fluence's contract management or execution capabilities, which could have broader implications for its business practices and relationships with other clients.

Financial Analyst

The litigation between Fluence and Diablo Energy Storage is a critical financial concern. The outcome of this dispute could result in either the recovery of significant funds for Fluence or the incurrence of additional costs. Investors should consider the potential for both short-term legal expenses and the long-term implications of the dispute's outcome on Fluence's financial health.

Analyzing the company's recent 10-K filing can provide insights into the financial reserves set aside for such disputes and the company's assessment of the potential financial impact. It is also essential to evaluate how the market has reacted to similar legal disputes in the sector, as these can affect investor confidence and the company's stock price.

Industry Analyst

The energy storage sector is closely watching the legal dispute between Fluence and Diablo Energy Storage due to its potential to set precedents in contract enforcement and dispute resolution. The outcome could influence how contracts are structured and negotiated in the future within the industry.

For stakeholders, the dispute highlights the importance of robust contract terms and the potential risks associated with project execution. It also brings attention to the need for clear communication and dispute resolution mechanisms between service providers and their clients in the energy storage industry. The resolution of this dispute will likely be scrutinized for its broader implications on industry practices and standards.

ARLINGTON, Va., Dec. 20, 2023 (GLOBE NEWSWIRE) -- Fluence Energy, Inc. (“Fluence”) (NASDAQ: FLNC), a leading global provider of energy storage products and services, and optimization software for renewables and storage, became aware of an article published today by Energy Storage News reporting that Fluence is the defendant in a counterclaim relating to its contract with Diablo Energy Storage, LLC. This information was disclosed in our recent Annual Report on Form 10–K for the fiscal year ended September 30, 2023 filed on November 29, 2023 with the Securities and Exchange Commission (the “SEC”).

The article only focuses on the counterclaim which was filed in reaction to Fluence’s original claim against Diablo Energy Storage, LLC (“Diablo”), even mentioning the law firm which filed it. Fluence’s original claim was for Diablo’s failure to comply with the terms of their contract, including payment of the remaining balance owed to Fluence and for other related damages. Instead of discussing Fluence’s position, set forth in its complaint, the article focused on the counterclaim.

Fluence is pleased with the work it accomplished on the Diablo Plant, which is the subject of the complaint, and it wants and expects to be paid for its work. Fluence believes the counterclaim is without merit, and Fluence will vigorously pursue its affirmative claims as well as defend against the claims by the defendant Diablo Energy Storage, LLC.

Additional details are available in Fluence’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed on November 29, 2023 with the Securities and Exchange Commission and available on the company’s website. There have been no material developments in the litigation since the filing of the 10-K.

About Fluence

Fluence Energy, Inc. (Nasdaq: FLNC) is a global market leader in energy storage products and services, and optimization software for renewables and storage. With a presence in 47 markets globally, Fluence provides an ecosystem of offerings to drive the clean energy transition, including modular, scalable energy storage products, comprehensive service offerings, and the Fluence IQ Platform, which delivers AI-enabled SaaS products for managing and optimizing renewables and storage from any provider. The Company is transforming the way we power our world by helping customers create more resilient and sustainable electric grids.

For more information, visit our website, or follow us on LinkedIn or Twitter. To stay up to date on the latest industry insights, sign up for Fluence's Full Potential Blog.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, Fluence’s plans regarding such active litigation matters. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this press release, words such as “may,” “possible,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these terms or other similar expressions and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments, as well as a number of assumptions concerning future events, and their potential effects on our business. These forward-looking statements are not guarantees of performance, and there can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, which include, but are not limited to, such factors set forth under Item 1A.“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2023, filed with the SEC on November 29, 2023, and in other filings we make with the SEC from time to time. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements made in this press release. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

Media Contact
Shayla Ebsen, Director of Communications
Email: media.na@fluenceenergy.com
Phone: +1 (605) 645-7486

Analyst Contact
Lexington May, Vice President Finance & Investor Relations
Email: investorrelations@fluenceenergy.com
Phone: +1 (713) 909-5629

FAQ

What is the recent counterclaim against Fluence Energy, Inc. (FLNC)?

Fluence Energy, Inc. (FLNC) is facing a counterclaim from Diablo Energy Storage, LLC related to a contract dispute.

When was the counterclaim filed against Fluence Energy, Inc. (FLNC)?

The counterclaim was filed in response to Fluence's original claim against Diablo for non-compliance with the contract terms.

What does Fluence Energy, Inc. (FLNC) plan to do about the counterclaim?

Fluence is confident in its position and plans to vigorously pursue its claims while defending against the counterclaim.

Where can I find more details about the counterclaim and the original claim?

Additional details are available in Fluence’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023 filed on November 29, 2023 with the Securities and Exchange Commission and available on the company’s website.