Hyzon is being investigated by Ademi LLP for probable securities fraud charges. The inquiry stems from possible inaccuracies in Hyzon’s representations about its business operations and prospects.
The inquiry is looking at whether Hyzon reported the validity of current and potential client contracts correctly. Hyzon, for example, stated on September 9, 2021 that it had landed a big new agreement with Shanghai HongYun for 500 trucks, but Chinese government records reveal that Shanghai HongYun was only founded three days before Hyzon announced the transaction and had no paid-in capital.
In February 2021, Hyzon reported a deal to construct and deliver 1,500 hydrogen-powered vehicles for New Zealand’s Hiringa Energy, although Hiringa has denied being a customer, according to analyst Blue Orca. Several Hyzon officials are said to have resigned as a result of misrepresentations concerning client contracts.