BOSTON, MA / ACCESSWIRE / November 18, 2020 / On October 13, 2020, analyst Hindenburg Research published a report concerning Loop Industries, Inc. (NASDAQ:LOOP), in which Hindenburg concluded that Loop "is smoke and mirrors with no viable technology." Hindenburg concluded that "Loop's claimed breakthroughs in PET plastic recycling are fiction." This news stunned the market, causing Loop shares to plummet by approximately 33% in one day.
A lawsuit has been filed against Loop and certain of its executives in the U.S. District Court for the Southern District of New York. The lawsuit is captioned Tremblay v. Loop Industries, Inc., et al., No. 1:20-cv-08538 (S.D.N.Y.). Loop refers to itself as a technology company whose "mission is to accelerate the world's shift toward sustained PET plastic and polyester fiber." According to the lawsuit and the Hindenburg report, however, a former Loop employee told Hindenburg that Loop's scientists, under pressure from the company's CEO, were tacitly encouraged to lie about the results of the company's process internally. The suit alleges that Hindenburg "obtained internal documents and photographs to support" those claims. Hindenburg further stated that according to a former employee, Loop's previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were "technically and industrially impossible." As part of its investigation, Hindenburg stated that it interviewed former employees, competitors, industry experts, and company partners.
If you purchased or acquired shares of Loop common stock between September 24, 2018 and October 12, 2020 and lost money, you are strongly encouraged to contact the nationally-recognized securities law firm Block & Leviton LLP (www.blockleviton.com) at (617) 398-5600, via email at [email protected], or at https://www.blockleviton.com/cases/loop. The deadline to move the Court to be appointed lead plaintiff is December 14, 2020.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP