HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Li-Cycle Holdings Corp. (LICY) Investors with Significant Losses to Contact Firm’s Attorneys Before June 20th Deadline in Securities Fraud Class Action
SAN FRANCISCO, June 15, 2022 (GLOBE NEWSWIRE) — Hagens Berman urges Li-Cycle Holdings Corp. (NYSE: LICY) investors who suffered significant losses to submit your losses now. A securities fraud class action has been filed and certain investors have the opportunity to lead the case.
Class Period: Feb. 16, 2021 – Mar. 23, 2022
Lead Plaintiff Deadline: June 20, 2022
Visit: www.hbsslaw.com/investor-fraud/LICY
Contact An Attorney Now: [email protected]
844-916-0895
Li-Cycle Holdings Corp. (NYSE: LICY) Securities Fraud Class Action:
Li-Cycle has assured investors that its SPAC merger with Peridot in Aug. 2021 would enable it to “fully fund” its growth plans and has touted its “robust customer network” as supportive of 2021 – 2025 cumulative $985 million EBITDA (inclusive of off-take agreements with Traxys North America, which would generate $300 million/year of revenue).
The complaint alleges Defendants made misleading statements or failed to disclose: (1) Traxys, Li-Cycle’s largest “customer” is merely a broker that tries to sell Li-Cycle’s product to end customers; (2) Li-Cycle engaged in highly questionable related party transactions; (3) Li-Cycle’s mark-to-model accounting gave a false impression of growth; (4) a significant portion of the Company’s revenues were derived from simply marking up receivables on products that had not been sold; (5) Li-Cycle’s gross margins have likely been negative since inception; and, (6) the Company will likely require an additional $1 billion of funding to support its planned growth.
According to the complaint, Defendants’ statements were brought into question when Blue Orca Capital published a scathing report on Mar. 24, 2022, likening Li-Cycle’s accounting to Enron’s and concluding the Company improperly recognized up to 45% of the Company’s recent reported quarterly revenues because they were derived from inflating receivables for unsold products. Blue Orca also observed that Traxys is not really a customer, the Company’s cash burn is so severe that it requires about $1 billion additional funding, and the Company diverted $529,902 to its founders’ family through questionable related party transactions.
“We’re focused on investors’ losses and proving Li-Cycle cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Li-Cycle and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Li-Cycle 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].
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
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