CoreWeave Faces Class Action Over Data Center Delays

- The central issue is the delayed completion of a critical data center cluster in Denton, Texas, which was intended to support operations for OpenAI. A December 15, 2025, Wall Street Journal report revealed that the supplier, Core Scientific, had been flagging construction delays for months. - The lawsuit alleges that CoreWeave was aware of these delays while making public statements about its ability to rapidly scale and meet "unprecedented" demand for its AI infrastructure. The class period for affected investors runs from March 28, 2025, to December 15, 2025. - Following the revelations and a downward revision of its full-year revenue guidance on November 10, 2025, CoreWeave's stock price fell by 34% between November 10 and December 16, 2025, wiping out approximately $14 billion in market capitalization. - The situation was complicated by a failed merger between CoreWeave and Core Scientific. On October 30, 2025, Core Scientific announced it had terminated the agreement after failing to secure enough shareholder votes, causing CoreWeave's stock to drop over 6% on the news. - This operational setback contrasts with the company's massive $55.6 billion revenue backlog, which includes major deals with Meta and OpenAI. However, the company also carries significant debt, with $29 billion in total liabilities against $3.9 billion in equity, and burned through $1.59 billion in free cash flow in Q3 2025 as it raced to expand capacity. - The company's reliance on a single third-party supplier for a critical project is a key allegation, with the lawsuit claiming CoreWeave materially understated the scope and severity of this risk to its revenue projections. - Adding to recent headwinds, CEO and President Michael Intrator sold 32,455 shares for approximately $7.72 million on February 11, 2026. The company is scheduled to report its next earnings on February 26, 2026.