Pomerantz Law Firm Announces the Filing of a Class Action against Loop Industries, Inc. Certain Officers - LOOP
Oct 29, 2020, 02:46 ET
NEW YORK, Oct. 29, 2020 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against certain officers of Loop Industries, Inc. ("Loop" or the "Company") (NASDAQ: LOOP). The class action, filed in United States District Court for the Southern District of New York, and docketed under 20-cv-09031, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired Loop securities between September 24, 2018 and October 12, 2020, inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Loop securities during the class period, you have until December 14, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
Loop is a technology company that purports to own proprietary technology that depolymerizes no- and low-waste PET plastic and polyester fiber. The resulting material is used to create PET resin for food-grade packaging.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company's business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Loop scientists were encouraged to misrepresent the results of Loop's purportedly proprietary process; (ii) Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (iii) as a result, the Company was unlikely to realize the purported benefits of Loop's announced partnerships with Indorama Ventures Public Company Limited ("Indorama") and thyssenkrupp Industrial Solutions AG ("thyssenkrupp"); and (iv) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On October 13, 2020, Hindenburg Research published a report alleging, among other things, that "Loop's scientists, under pressure from CEO Daniel Solomita, were tacitly encouraged to lie about the results of the company's process internally." The report also stated that "Loop's previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were 'technically and industrially impossible,'" according to a former employee. Moreover, the report alleged that "Executives from a division of key partner Thyssenkrupp, who Loop entered into a 'global alliance agreement' with in December 2018, told us their partnership is on 'indefinite' hold and that Loop 'underestimated' both costs and complexities of its process."
On this news, the Company's stock price fell $3.78 per share, or over 32%, to close at $7.83 per share on October 13, 2020, thereby damaging investors.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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