Shareholder rights law firm Robbins LLP reminds purchasers of the class action filed against Loop Industries, Inc. (NASDAQ: LOOP) for alleged violations of the Securities Exchange Act of 1934 between September 24, 2018 and October 12, 2020. Loop Industries, Inc. claims to own proprietary technology that depolymerizes waste polyethylene terephthalate (PET) plastics and polyester fibers into PET resin for food-grade packaging.
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Loop Industries, Inc. (LOOP) Accused of Deceiving Consumers and Investors
According to the complaint, during the class period, the company falsely touted the strength of Loop's technological and operational profile. On October 13, 2020, Hidenburg Research published a report titled "Loop Industries: Former Employees and Plastics Experts Blow The Whistle On This ‘Recycled’ Smoke And Mirrors Show." According to the report, Loop Industries' scientists were under pressure from CEO Daniel Solomita to lie about the results of the company's process. Hidenburg also alleged that the Company did not have the proprietary process or technology to break PET down to its base chemicals at a recovery rate of 100% and that it would have been 'technically and industrially impossible' to do so. The report purported that a key partner Tysenkrupp put an indefinite hold on their global alliance agreement as Loop 'underestimated' both costs and complexities of its process. On this news, Loop's stock dropped 32% to close at $7.83, and continues to decline.
If you purchased Loop Industries, Inc. (LOOP) securities between September 24, 2018 and October 12, 2020, you have until December 14, 2020, to ask the court to appoint you lead plaintiff for the class.
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