Johnson Fistel, PLLP has launched an investigation into Hyliion Holdings Corp. (NYSE: HYLN) regarding potential violations of federal securities laws. The probe follows a June 23, 2026, short report by Pelican Way Research alleging that Hyliion issued materially misleading information about a non-binding Letter of Intent (LOI) with VFG Holdings. The report claimed the deal, representing approximately $133 million in potential revenue, artificially inflated Hyliion’s reported $400 million-plus pipeline by roughly one-third. Following the report’s publication, Hyliion’s stock fell 17.2% to close at $6.10 per share on June 23, 2026.

The investigation centers on the commercial validity of the LOI announced on May 13, 2026, which involved the potential purchase of up to 250 KARNO Cores. Pelican Way Research identified VFG as VFG Tech Holdings, LLC, noting it was incorporated in January 2026 with only four LinkedIn employees and minimal operational substance. The firm questioned whether such an entity could support an order of this magnitude. This legal scrutiny adds to existing investigations, including one by Rosen Law Firm, which is also seeking to recover investor losses stemming from the same allegations.

Key Allegations and Deal Details

Pelican Way Research alleged that Hyliion’s pipeline is "artificially inflated by at least ~33%" due to the inclusion of the VFG LOI. The report highlighted that the deal had previously caused Hyliion’s stock to surge approximately 150%, raising concerns about whether the announcement provided meaningful commercial validation or merely speculative value. Additionally, the report noted that Hyliion CEO Thomas Healy has received approximately $15.4 million in compensation since 2021, while the company generated only approximately $8 million in total revenue during the same period.

Investor Action Required

Johnson Fistel is investigating whether Hyliion complied with federal securities laws and whether investor losses are recoverable. Investors who purchased Hyliion securities and suffered losses are encouraged to contact Jim Baker at Johnson Fistel, PLLP at (619) 814-4471 or via email at jimb@johnsonfistel.com . There is no cost or obligation to participate in the investigation. Similarly, Rosen Law Firm is preparing a class action, and investors may contact Phillip Kim, Esq., at 866-767-3653 or case@rosenlegal.com .

What the Numbers Show

The juxtaposition of the $133 million potential revenue from a single non-binding LOI against Hyliion’s total historical revenue highlights significant concentration risk in its growth narrative. With the VFG deal accounting for roughly one-third of its entire reported pipeline, any doubt regarding VFG’s operational capacity directly threatens the credibility of Hyliion’s broader financial projections. The subsequent 17.2% stock drop underscores market sensitivity to these validation gaps.

Hyliion Holdings Corp has been awarded a $41,699,946 cost-plus-fixed-fee contract by the Office of Naval Research to design, develop, and construct 2-megawatt and 3-megawatt KARNO power generation systems. This contract marks a significant expansion for the developer of modular power plant technology into defense applications.

Contract Scope

The agreement provides for the design, development, construction, testing, and delivery of the KARNO power generation systems. The systems will be deployed at specific locations identified by the Office of Naval Research.

Financial Details

The contract is valued at $41,699,946 and is structured as a cost-plus-fixed-fee agreement. This funding supports the comprehensive development cycle of the power generation units.