SHAREHOLDER ALERT: Law firm Pomerantz is investigating claims on behalf of investors in Li-Cycle Holdings Corp. – LICY
New York, New York–(Newsfile Corp. – May 19, 2022) – Pomerantz LLP is investigating claims on behalf of investors from Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) LICY. Such investors are encouraged to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation focuses on whether Li-Cycle and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.
On March 24, 2022, Blue Orca Capital released a report (the “Report”) describing the company as “a near-fatal combination of stock promotion, laughable governance, a bankrupt company with a cash haemorrhage, and… ‘very questionable Enron-type accounting‘. According to the report, “Li-Cycle recognizes revenue using an Enron-like mark-to-model accounting gimmick.
Li-Cycle recognizes revenue months in advance of actual sales of its recycled black mass, based on its own tentative estimate of the future value of the product. This accounting treatment is clearly vulnerable to abuse, giving Li-Cycle discretion over its reported earnings. We suspect that as part of this, LiCycle is marking up the value of its unsold product receivables and funneling the gains through its revenue line.”
On this news, Li-Cycle’s stock price fell $0.47 per share, or 5.60%, 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 recognized as one of the leading firms in the areas of corporate litigation, securities and antitrust. 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 the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext. 7980
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