NEW YORK, April 23, 2022 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Li-Cycle Holdings Corp. (f/k/a Peridot Acquisition Corp.)("Li-Cycle" or the "Company") (NYSE: LICY). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Li-Cycle and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On March 24, 2022, before market hours, market researcher Blue Orca Capital released a report on Li-Cycle (the "Report"), which described the Company as "a near fatal combination of stock promotion, laughable governance, a broken business hemorrhaging cash, and highly questionable Enron-like acounting." Among other things, the Report alleged that the Company's revenues are based on "an Enron-like mark-to-model accounting gimmick," and that "Li-Cycle diverted $529,902 in investor capital to the family [] of its founders through a series of highly questionable related party payments." The Report also alleged that the Company's "cash burn is so severe and far above previous guidance" which "will require the Company to raise at least $1 billion . . . in large part by massively diluting current shareholders."
Following publication of the Report, Li-Cycle's stock price fell $0.47 per share, or 5.6%, to close at $7.93 per share on March 24, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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