Robbins Geller Rudman & Dowd LLP announces that
SAN DIEGO, April 20, 2022 (GLOBE NEWSWIRE) — Robbins Geller Rudman & Dowd LLP announces that buyers of Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp. (NYSE: LICY; LICY.WS) traded securities between February 16, 2021 and March 23, 2022 inclusive (the “Class Period”) have until June 21, 2022 to seek appointment as lead plaintiff in Barnish v. Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp., no. 22-cv-02222 (EDNY). Started on April 19, 2022, the Li Cycle The class action accuses Li-Cycle and some of its top executives of violating the Securities Exchange Act of 1934.
If you have suffered significant losses and wish to act as the lead plaintiff of the Li Cycle class action, please provide your information by clicking here. You can also contact a lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected]. Principal Applicant’s Requests for Li Cycle the class action must be filed with the court no later than June 21, 2022.
CASE ALLEGATIONS: Li-Cycle is the leading recycler of lithium-ion batteries in North America. On August 10, 2021, Li-Cycle merged with Peridot Acquisition Corp., a special purpose acquisition company (“SPAC”) also referred to as a blank check company. Prior to the merger, Peridot was listed on the NYSE under the symbols PDAC, PDAC.U and PDAC WS.
the Li Cycle The class action alleges that, throughout the Class Period, the defendants made false and misleading statements and failed to disclose that: (i) Li-Cycle’s largest customer, Traxys North America LLC, n is not actually a customer, but merely a broker providing financial working capital to Li-Cycle while Traxys attempts to sell Li-Cycle’s product to end customers; (ii) Li-Cycle has engaged in transactions with highly questionable related parties; (iii) Li-Cycle’s mark-to-model accounting is vulnerable to abuse and gives a false impression of growth; (iv) a significant portion of Li-Cycle’s reported revenue was derived simply from gross up receivables on products that had not been sold; (v) Li-Cycle’s gross margins have likely been negative since inception; (vi) Li-Cycle will need an additional $1 billion in funding to support its expected growth (which is higher than what Li-Cycle secured through the merger); and (vii) as a result, the defendants’ public statements were materially false and/or misleading at all relevant times.
On March 24, 2022, Blue Orca Capital released a report on Li-Cycle describing Li-Cycle as “a near-fatal combination of stock promotion, laughable governance, a hemorrhagic bankrupt company, and kind of accounting. Enron very questionable”. Among other things, Blue Orca alleged that Li-Cycle’s earnings are based on “an Enron-like model brand accounting gizmo” and that “Li-Cycle diverted $529,902 in investor capital to the family. . . from its founders through a series of highly questionable related party payments.” Blue Orca also alleged that “Li-Cycle’s cash burn is so severe and well above previous forecasts ‘that’ will require [Li-Cycle] raise at least $1 billion. . . largely by massively diluting current shareholders. At this news, Li-Cycle’s stock price fell more than 5%, hurting investors.
Robbins Geller launched a dedicated SPAC working group to protect investors in blank check companies and seek redress for corporate wrongdoing. Comprised of experienced litigators, investigators and forensic accountants, the SPAC Task Force is dedicated to researching and prosecuting fraud on behalf of aggrieved SPAC investors. The rise of blank check funding presents unique risks for investors. Robbins Geller’s SPAC Task Force represents the forefront of ensuring integrity, honesty and fairness in this rapidly developing area of investment.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Li-Cycle securities during the class action period to seek appointment as a lead plaintiff in the Li Cycle class action. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the Li Cycle class action. The main plaintiff can select a law firm of his choice to plead Li Cycle class action. An investor’s ability to participate in any potential future upturn in the Li Cycle the class action does not depend on the status of principal plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked No. 1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone, more than triple the amount recovered by any other firm from plaintiffs. With 200 attorneys in 9 offices, Robbins Geller attorneys have secured many of the largest securities class action recoveries in history, including the largest securities class action recovery on record – $7.2 billion dollars – in In re Enron Corp. Dry. Litigation Please visit http://www.rgrdlaw.com for more information.
Past results do not guarantee future results.
Services can be performed by attorneys in any of our offices.
|Robbins Geller Rudman & Dowd LLP|
|655 W. Broadway, San Diego, CA 92101|
|JC Sanchez, 800-449-4900|