San Francisco, Calif .– (Newsfile Corp. – December 13, 2020) – Hagens Berman urges Loop Industries, Inc. (NASDAQ: LOOP) investors with significant losses to file their losses now. A class action lawsuit for securities fraud has been filed and certain investors may face sufficient losses to move on behalf of the lead plaintiff.
Classes: September 24, 2018 – October 12, 2020
Lead plaintiff deadline: December 14, 2020
Contact an attorney now: LOOP@hbsslaw.com
Loop (LOOP) Securities Fraud Class Action:
The complaint alleges that Loop made false and misleading statements about its supposedly “proven” technology that breaks PET plastic into its base chemicals with a 100% recovery rate. The complaint also alleges that Loop misrepresented its partnerships with key customers, including Coca-Cola.
Investors reportedly began learning the truth on October 13, 2020 when Hindenburg Research released a report that concluded that “looping are smoke and mirrors without viable technology”. Hindenburg reported that: (i) Loop’s technology is no more efficient or less expensive than traditional PET recycling methods, and that its previous claims to break down PET into its base chemical at 100% recovery were “technically and industrially impossible”; (ii) Under pressure from CEO Daniel Solomita, Loop scientists were tacitly encouraged to lie internally about the results of the company’s process. and (iii) the Indorama partnership has not even entered into and the Thyssenkrupp partnership is for an indefinite period.
According to the Hindenburg report, the price of Loop shares crashed on October 13, 2020.
On November 4, 2020, Loop announced that the Coca-Cola Cross Enterprise Procurement Group had terminated its agreement because “the company had not reached its first production milestone from the joint venture by July 2020,” as required in the agreement.
“We’re focusing on investor losses and proving that Loop has misrepresented its technological capabilities,” said Reed Kathrein, the Hagens Berman partner who led the investigation.
The story goes on
If you are a Loop Industries investor and you are experiencing significant losses or have knowledge that may aid the company’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Individuals with non-public information about Loop Industries should consider their options to help with the investigation or to take advantage of the SEC’s whistleblower program. Under the new program, whistleblowers who provide original information can receive rewards of up to 30 percent for each successful SEC recovery. For more information, call Reed Kathrein at 844-916-0895 or send an email to LOOP@hbsslaw.com.
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The source version of this press release can be found at https://www.newsfilecorp.com/release/70156