coreweave -- data center construction delays securities fraud

case overview

a securities class action was filed against coreweave on january 12, 2026, alleging the ai cloud computing company concealed significant data center construction delays and overstated its ability to meet customer demand.

CaseMasaitis v. CoreWeave, Inc., No. 2:26-cv-00355
CourtU.S. District Court, District of New Jersey
FiledJanuary 12, 2026
Class PeriodMarch 28, 2025 — December 15, 2025
Lead Plaintiff DeadlineMarch 13, 2026
Market Cap Lost~$14 billion
StatusActive

allegations

the complaint alleges violations of sections 10(b) and 20(a) of the securities exchange act:

  1. overstated demand capacity: coreweave overstated its ability to meet “robust” and “unprecedented” customer demand for ai cloud infrastructure
  2. single-supplier risk: the company materially understated the scope and severity of its reliance on a single third-party data center supplier (core scientific)
  3. concealed delays: construction delays at a critical denton, texas data center cluster were flagged by core scientific as early as february 2025 — nine months before coreweave disclosed them
  4. revenue recognition risk: coreweave’s ability to recognize revenue from its multibillion-dollar backlog was contingent on infrastructure that management allegedly knew was not on track

key events

march 28, 2025

coreweave completed its ipo, raising $1.5 billion at $40/share. stock subsequently rose approximately 350% to $183.58 by june 2025 on ai enthusiasm.

march 10, 2025

coreweave announced a deal worth up to $11.9 billion to deliver ai infrastructure to openai.

october 30, 2025

the planned $5.75 billion merger with core scientific failed to win enough shareholder votes.

november 10, 2025

coreweave lowered 2025 guidance for revenue, operating income, capex, and active power capacity, citing “temporary delays related to a third-party data center developer who is behind schedule.” stock crashed 16% ($17.22/share), closing at $88.30.

december 15, 2025

the wall street journal revealed the full extent of delays: a “huge data-center cluster” in denton, texas intended for openai “has been pushed back several months.” core scientific had “flagged weather-related delays” as early as february 2025. stock fell an additional 3%.

total decline: $36.11/share (-34%) between november 10 and december 16, 2025.


significance

the coreweave case illustrates the vulnerability of ai infrastructure companies that depend on third-party data center developers. the nine-month gap between when delays were first flagged internally and when they were disclosed to investors is the core of the securities fraud theory.

the case also highlights the risks of the ai infrastructure business model: massive customer contracts (e.g., $11.9B openai deal) create enormous revenue expectations, but revenue recognition depends entirely on physical infrastructure completion.


sources


last updated: february 22, 2026

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