NEW YORK, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Loop Industries, Inc. (“Loop” or the “Company”) (NASDAQ: LOOP) and certain of its officers and directors, alleging violations of federal securities laws. If you purchased Loop securities between September 24, 2018 and October 12, 2020, inclusive, and have suffered losses, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com for additional information about your rights.
The lawsuit alleges that Loop and the other named defendants issued materially false and/or misleading information, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, according to the complaint: (1) Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process for recycling plastics; (2) Loop did not have the technology to break PET plastics down to its base chemicals at a recovery rate of 100%; and (3) as a result, the Company was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp.
On October 13, 2020, Hindenburg Research (“Hindenburg”) published a report describing Loop’s technology for recycling plastics as being “smoke and mirrors.” Having purportedly spoken with multiple former employees, company partners, experts, and competitors during its 6-month investigation, Hindenburg stated that Loop’s scientists had been “tacitly encouraged to lie about the results of the [C]ompany’s process,” that “Loop’s previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were ‘technically and industrially impossible,” and that Loop’s partnership with Thyssenkrupp was on an “indefinite hold.”
On this news, Loop’s stock price fell sharply from $11.61 per share on October 12, 2020 to close at $7.83 per share on October 13, 2020, representing a decline of 32.56%.
What You Can Do
If you purchased or otherwise own Loop stock, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312, or at jzimmerman@scott-scott.com, or visit the Loop page on our website at https://scott-scott.com/case/loop-industries-inc/. The lead plaintiff deadline is December 14, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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Jonathan Zimmerman
Scott+Scott Attorneys at Law LLP
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jzimmerman@scott-scott.com