| '''Consumers have sued over the same defect.''' On February 13, 2026, a putative consumer class action, ''Berdner v. Dragonfly Energy Holdings Corp.'', was filed in Sonoma County, California, and later removed to federal court.<ref name="berdner">''Berdner v. Dragonfly Energy Holdings Corp.'', No. 3:26-cv-03855 (N.D. Cal.), removed April 30, 2026 from Sonoma County Superior Court No. 26CV01247. [https://www.courtlistener.com/docket/73278488/berdner-v-dragonfly-energy-holdings-corp/ Docket via CourtListener].</ref> In Dragonfly's own words, in its annual report, the plaintiffs ''"allege that the products share a uniform design defect related to the positive terminal connection that can result in overheating, premature failure, and safety risk."''<ref name="10k2025">{{Cite web |url=https://www.sec.gov/Archives/edgar/data/1847986/000149315226013635/form10-k.htm |title=Form 10-K (fiscal year 2025), Legal Proceedings and Note on Warranty Obligations |publisher=Dragonfly Energy Holdings Corp. / U.S. Securities and Exchange Commission |date=2026-03-30 |access-date=2026-06-06}}</ref><ref name="10q2026">{{Cite web |url=https://www.sec.gov/Archives/edgar/data/1847986/000149315226023103/form10-q.htm |title=Form 10-Q (quarter ended March 31, 2026), Legal Proceedings |publisher=Dragonfly Energy Holdings Corp. / U.S. Securities and Exchange Commission |date=2026-05-14 |access-date=2026-06-06}}</ref> That is a separate set of plaintiffs, represented by separate counsel, describing the same positive-terminal failure on the same battery line that Prowse described. | | '''Dragonfly's own SEC filings disclose the risk.''' In its annual report, Dragonfly warns investors that ''"[l]ithium-ion battery cells have been observed to catch fire or release smoke and flame,"'' and that a product defect ''"could subject us to lawsuits, product recalls, or redesign efforts."''<ref name="10k2024">{{Cite web |url=https://www.sec.gov/Archives/edgar/data/1847986/000164117225001755/form10-k.htm |title=Form 10-K (fiscal year 2024), Item 1A Risk Factors |publisher=Dragonfly Energy Holdings Corp. / U.S. Securities and Exchange Commission |date=2025-03-31 |access-date=2026-06-06}}</ref> The company's estimated warranty obligation rose from $307,000 at the end of 2023 to $514,000 at the end of 2024 to $867,000 at the end of 2025.<ref name="10k2025" /><ref name="10k2024" /> |