CoreWeave Hit With Class Action Over Data Center Delays, $14B Loss
Lawsuit alleges the AI cloud provider misled investors about the status of its Denton, Texas facility, leading to a 34% stock plunge and significant market value erosion.
CoreWeave, Inc. (NASDAQ: CRWV), a specialized cloud provider for artificial intelligence workloads, is facing a securities class-action lawsuit alleging the company made false and misleading statements about the progress of a key data center project in Denton, Texas. The complaint, filed by law firm Hagens Berman, claims these misrepresentations concealed critical delays that ultimately impacted the company's ability to meet escalating customer demand, culminating in a stock collapse that wiped out approximately $14 billion in market value between November and December 2025.
The lawsuit, announced on January 21, 2026, centers on allegations that CoreWeave failed to disclose significant setbacks at its Denton facility, a critical piece of infrastructure for the high-performance computing provider. According to the complaint, these operational hurdles were known to the company but not shared with investors. This lack of transparency allegedly artificially inflated the stock price during the class period, which runs from March 28, 2025, to December 15, 2025.
The market’s reaction to the unfolding situation was severe. The first major shock came on October 30, 2025, when CoreWeave's stock fell by over 6% after the termination of a proposed merger with its partner, Core Scientific. Just weeks later, on November 11, 2025, the stock plunged over 16% in a single day after the company was forced to lower its 2025 revenue guidance, citing what it described at the time as "temporary delays related to a third-party data center developer," according to a statement from Bragar Eagel & Squire, P.C..
Between early November and mid-December 2025, CoreWeave's shares plummeted by 34%, a decline of $36.11 per share. This precipitous drop erased an estimated $14 billion in shareholder value, prompting the legal action on behalf of investors who purchased the stock at the allegedly inflated prices. The situation was further exacerbated by a Wall Street Journal report on December 15, 2025, which revealed that Core Scientific had flagged project delays with CoreWeave as early as February 2025. Following the report, CoreWeave's stock dropped another 3%.
As a company operating at the heart of the booming AI industry, CoreWeave’s valuation and growth prospects are intrinsically tied to its capacity to provide massive-scale GPU-accelerated computing. Delays in bringing new data centers online can have a direct impact on revenue and market share in the highly competitive cloud infrastructure space. The lawsuit filed by Hagens Berman underscores the operational risks that can undermine even the most promising technology narratives.
In the wake of the news, CoreWeave's stock has been under pressure, with shares trading at $94.05 in Tuesday's session. The company, which specializes in providing the high-performance computing necessary for training and deploying large-scale AI models, now faces a legal battle that could have significant financial and reputational repercussions. The deadline for investors to file as lead plaintiff in the class action is March 13, 2026. CoreWeave has not yet issued a formal public statement responding to the specific allegations in the lawsuit.