National Grid Faces Class Action Lawsuit Over Misleading Information, Shares Drop 5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 01 2026
0mins
Should l Buy NGG?
Source: PRnewswire
- Class Action Initiation: Rosen Law Firm is investigating potential securities claims against National Grid for possibly issuing misleading business information, indicating a strong investor concern regarding the company's transparency and accountability.
- Stock Price Reaction: On July 2, 2025, National Grid's American Depositary Shares (ADSs) fell 5% following reports that a fire at Heathrow Airport was caused by the company's failure to maintain an electricity substation, reflecting market worries about management and safety issues.
- Regulatory Investigation: The UK Energy Minister expressed deep concern over the report, which revealed that the issue leading to the fire was identified seven years prior but left unaddressed, potentially leading to stricter regulatory scrutiny that could impact National Grid's operations and reputation.
- Legal Counsel Advisory: Rosen Law Firm emphasizes the importance of selecting experienced legal counsel in securities class actions, suggesting that having the right representation can significantly influence investor compensation outcomes and enhance confidence in the legal process.
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Analyst Views on NGG
Wall Street analysts forecast NGG stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for NGG is 85.50 USD with a low forecast of 85.50 USD and a high forecast of 85.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 86.890
Low
85.50
Averages
85.50
High
85.50
Current: 86.890
Low
85.50
Averages
85.50
High
85.50
About NGG
National Grid plc is a United Kingdom-based energy company. The Company's principal activities involve the transmission and distribution of electricity in Great Britain and of electricity and gas in the northeastern United States. Its segments include UK Electricity Transmission, UK Electricity Distribution, New England, New York and National Grid Ventures. The UK Electricity Transmission segment includes the high-voltage electricity transmission networks in England and Wales. The UK Electricity Distribution segment includes electricity distribution networks of NGED in the East Midlands, West Midlands and South West of England and South Wales. The New England segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New England. The New York segment includes electricity distribution networks, high-voltage electricity transmission networks and gas distribution networks in New York.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Class Action Preparation: Investors who purchased National Grid securities may be eligible for compensation through a contingency fee arrangement, indicating the firm's dedication to providing legal support for affected shareholders.
- Fire Incident Impact: The fire incident at London Heathrow Airport in March 2025, attributed to National Grid's failure to maintain an electricity substation, led to a 5% drop in the company's American Depositary Shares (ADSs) on July 2, 2024, reflecting market concerns over corporate governance.
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- Legal Investigation Launched: Rosen Law Firm is investigating potential securities claims against National Grid (NYSE:NGG) for allegedly issuing misleading business information, indicating significant legal risks for the company and potential compensation for affected investors.
- Stock Price Impact: Following a report on July 2, 2025, linking National Grid's failure to maintain an electricity substation to a fire at Heathrow Airport, National Grid's American Depositary Shares (ADS) fell by 5%, reflecting market concerns over the company's governance and operational capabilities.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, highlighting investor concerns regarding the company's transparency and accountability, which may affect future investor confidence.
- Historical Context: The incident stems from a report stating that the issue leading to the fire was identified seven years prior but left unaddressed, exacerbating the public and regulatory trust crisis surrounding National Grid.
See More
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- Rise of Virtual Power Plants: Utilities are deploying Virtual Power Plants (VPPs) that utilize thousands of small energy resources, including smart thermostats and home batteries, to create a cloud-based network that enhances grid flexibility and reliability during peak demand periods.
- National Grid's Growth Potential: National Grid's ConnectedSolutions program, launched in under four months, now boasts 250 megawatts of peak shaving capacity, with a reported underlying profit of £2.29 billion (approximately $3.1 billion), reflecting a 12% year-over-year increase and highlighting its strong performance amid rising energy demands.
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- Surging Market Demand: U.S. electricity demand is soaring due to electric vehicles, data centers, and extreme temperatures, prompting utilities to adopt virtual power plants (VPPs) to ensure grid stability as traditional coal and gas plants retire rapidly.
- National Grid's Performance Growth: National Grid's stock has risen nearly 40% over the past year, reporting an underlying profit of £2.29 billion, up 12% year-over-year in its half-year report, reflecting successful implementation in the VPP sector amid strong market demand.
- Sunrun's Expansion Plans: As the largest home-to-grid distributed power plant operator in the U.S., Sunrun has enrolled 106,000 customers in 17 VPP programs and collaborated with three utilities to provide a 500-megawatt VPP, aimed at preventing rolling blackouts during peak times.
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See More
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- Natural Gas Turbine Opportunity: Natural gas utilities like Atmos Energy (ATO) and NiSource (NI) operating in Texas and Virginia could benefit from the installation of natural gas turbines at data centers, leading to more attractive valuations and enhanced market competitiveness.
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See More
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- Earnings Momentum Ratings: Among large-cap utility stocks, Ørsted A/S and National Grid plc received an EPS revision grade of F, indicating significant downward pressure on analyst expectations for future earnings, which could lead to decreased investor confidence.
- Market Focus: Veolia Environnement SA and EDPR, S.A. also received EPS revision grades of F and D, respectively, highlighting that these companies are under greater earnings pressure, potentially impacting their stock performance and market competitiveness.
- Industry Trends: Evergy, Inc. and Duke Energy Corporation received D+ ratings, reflecting a broader weakening of earnings momentum in the utility sector, which may reduce investor interest in this industry.
- Investor Caution: As earnings season unfolds, market scrutiny on utility stocks intensifies, particularly for those with lower ratings, which may prompt investors to reassess associated risks.
See More
Rosen Law Firm Investigates National Grid for Misleading Information Claims
- Securities Claims Investigation: Rosen Law Firm is investigating potential securities claims against National Grid (NYSE: NGG) for possibly issuing misleading business information, emphasizing its commitment to protecting investor rights.
- Class Action Preparation: Investors who purchased National Grid securities may be eligible for compensation through a contingency fee arrangement, indicating the firm's dedication to providing legal support for affected shareholders.
- Fire Incident Impact: The fire incident at London Heathrow Airport in March 2025, attributed to National Grid's failure to maintain an electricity substation, led to a 5% drop in the company's American Depositary Shares (ADSs) on July 2, 2024, reflecting market concerns over corporate governance.
- Firm Reputation: Rosen Law Firm is renowned for its successful track record in securities class actions, having recovered over $438 million for investors in 2019 alone, showcasing its leadership position in the industry and commitment to safeguarding investor interests.
See More
Rosen Law Firm Investigates National Grid for Misleading Information Claims
- Legal Investigation Launched: Rosen Law Firm is investigating potential securities claims against National Grid (NYSE:NGG) for allegedly issuing misleading business information, indicating significant legal risks for the company and potential compensation for affected investors.
- Stock Price Impact: Following a report on July 2, 2025, linking National Grid's failure to maintain an electricity substation to a fire at Heathrow Airport, National Grid's American Depositary Shares (ADS) fell by 5%, reflecting market concerns over the company's governance and operational capabilities.
- Class Action Preparation: The firm is preparing a class action to recover investor losses, highlighting investor concerns regarding the company's transparency and accountability, which may affect future investor confidence.
- Historical Context: The incident stems from a report stating that the issue leading to the fire was identified seven years prior but left unaddressed, exacerbating the public and regulatory trust crisis surrounding National Grid.
See More
