SAN FRANCISCO, Oct. 14, 2020 /PRNewswire/ -- Hagens Berman urges Loop Industries, Inc.(NASDAQ: LOOP) investors with significant losses to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
The complaint alleges that Loop made false and misleading statements about its purportedly "proven" technology that breaks down PET plastic to its base chemicals at a recovery rate of 100%. The complaint also alleges that Loop misrepresented its partnerships with key customers.
Specifically, the complaint alleges that Defendants failed to disclose to investors: (1) that Loop scientists were encouraged to misrepresent the results of Loop's purportedly proprietary process; (2) that Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) that, as a result, the Company was unlikely to realize the purported benefits of Loop's announced partnerships with Indorama and Thyssenkrupp.
Investors allegedly began to learn the truth on Oct. 13, 2020, when Hindenburg Research published a report concluding "Loop is smoke and mirrors with no viable technology." Hindenburg reported that: (i) Loop's technology is no more efficient or cost effective than traditional PET recycling methods and its previous claims of breaking PET down to its base chemicals at a recovery rate of 100%were "'technically and industrially impossible;'" (ii) under pressure from CEO Daniel Solomita, Loop's scientists were tacitly encouraged to lie about the results of the Company's process internally; and (iii) the Indorama partnership has not even been finalized, and the Thyssenkrupp partnership is on indefinite hold.
Following Hindenburg's report, the price of Loop shares crashed on Oct. 13, 2020.
"We're focused on investors' losses and proving Loop inflated its technological capabilities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Loop Industries should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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