PURECYCLE TECHNOLOGIES, INC. SHAREHOLDERS HAVE AN OPPORTUNITY TO RECOVER THIER INVESTMENT LOSSES
PureCycle Technologies, Inc.
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of those who purchased or acquired the securities of PureCycle Technologies, Inc. (“PureCycle” or the “Company”) (NASDAQ: PCT) between November 16, 2020 and May 5, 2021 (the “Class Period”). The lawsuit seeks to recover PureCycle shareholders’ investment losses.
If you purchased shares of PureCycle between November 16, 2020 and May 5, 2021 and would like to discuss your legal rights and/or options, please click “Join Class Action” above.
New York, New York — Bernstein Liebhard, a nationally acclaimed investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of PureCycle Technologies, Inc. (“PureCycle” or the “Company”) (NASDAQ: PCT) from November 16, 2020 through May 5, 2021 (the “Class Period”). The lawsuit filed in the United States District Court for the Middle District of Florida alleges violations of the Securities Exchange Act of 1934.
The complaint alleges that, during the Class Period, defendants made materially false and misleading statements regarding the Company’s business. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the technology PureCycle licensed from Procter & Gamble is not proven and presents serious issues even at lab scale; (ii) the challenges posed by the availability and competition for the raw materials necessary to commercialize the licensed technology are significant; (iii) PureCycle’s financial projections are baseless; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
Before the markets opened on May 6, 2021, Hindenburg Research published a report on PureCycle entitled “PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored by the Worst of Wall Street.” Among the allegations in the report were that “PureCycle’s executives based their financial projections on ‘wild ass guessing,’ brought companies public far too early, and had deceived investors.” The report also stated that Hindenburg was “unable to find a single peer reviewed study in any scholarly journal citing or reviewing PureCycle’s licensed process,” contrary to the norm in the field. Furthermore, Hindenburg spoke to a “30-year expert on polymers” who “referred to the company’s flammable pressurized process as a ‘bomb’ and warned about the company forging ahead to commercial scale despite having issues at a lab scale.”
On this news, PureCycle’s stock price fell from its May 5, 2021 closing price of $24.59 per share to a May 6, 2021 closing price of $14.83, which represents a one-day drop of approximately 40%.
If you wish to serve as lead plaintiff, you must move the Court no later than July 12, 2021. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Joseph R. Seidman, Jr.
Bernstein Liebhard LLP