SAN DIEGO–(BUSINESS WIRE)–Nov 9, 2020–
Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Southern District of New York on behalf of purchasers of Loop Industries, Inc. (NASDAQ:LOOP) securities between September 24, 2018 and October 12, 2020 (the “Class Period”). The case is captioned Tremblay v. Loop Industries, Inc., No. 20-cv-8538, and is assigned to Judge Nelson Román. The Loop class action lawsuit charges Loop and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Loop securities during the Class Period to seek appointment as lead plaintiff in the Loop class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Loop class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Loop class action lawsuit. An investor’s ability to share in any potential future recovery of the Loop class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Loopclass action lawsuit or have questions concerning your rights regarding the Loopclass action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at [email protected]. Lead plaintiff motions for the Loopclass action lawsuit must be filed with the court no later than December 14, 2020.
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 Loop class action lawsuit alleges that during the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process; (2) Loop did not have the technology to break down PET to its base chemicals at a recovery rate of 100%; (3) as a result, Loop was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp; and (4) as a result of the foregoing, defendants’ positive statements about Loop’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 “[e]xecutives 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 [the] costs and complexities of its process.” On this news, Loop’s share price fell more than 32%, damaging investors.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
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CONTACT: Robbins Geller Rudman & Dowd LLP
Michael Albert, 800-449-4900
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Robbins Geller Rudman & Dowd LLP
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PUB: 11/09/2020 09:00 AM/DISC: 11/09/2020 09:01 AM