Lowey Dannenberg P.C. is investigating Hyliion Holdings Corp for potential violations of federal securities laws. The investigation follows a May 13, 2026 announcement by Hyliion of a letter of intent with VFG Holdings for up to 250 KARNO power module cores, representing approximately $133 million in potential revenue and about one-third of the company's reported $400 million pipeline, which caused Hyliion's stock to surge roughly 150%. A subsequent short report by Pelican Way Research alleged that VFG Holdings was incorporated only in January 2026, has four employees, no funding history, and a two-page website, and that the pipeline is artificially inflated by at least about 33%. The report also claimed that CEO Thomas Healy was paid approximately $15.4 million since 2021 while the company generated only about $8 million in total revenue over the same period, after which Hyliion's share price dropped significantly.
Hyliion Holdings Corp.Investigation for potential securities law violations following short report alleging inflated pipeline and misleading disclosures.