Li-Cycle Holdings (LICY) Faces Lawsuit for Misrepresenting True Cost of Rochester Hub, LICY’s Recent Financial Report Raises Solvency Concerns - Hagens Berman
HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages LICY Investors with Substantial Losses to Contact Firm’s Attorneys
News provided byHagens Berman Sobol Shapiro LLP
Nov 20, 2023, 11:01 AM ET
SAN FRANCISCO, Nov. 20, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Li-Cycle Holdings Corp. (NYSE: LICY) investors who suffered substantial losses to submit your losses now.
Li-Cycle Holdings Corp. (NYSE: LICY) Securities Fraud Class Action:
The litigation focuses on Li-Cycle’s s statements concerning its development of the first commercial hydrometallurgical resource recovery facility in North America (the “Rochester Hub”).
The complaint alleges that Li-Cycle mispresented and concealed that: (1) the Rochester Hub was experiencing escalating construction costs; (2) these escalating costs exceeded the expected aggregate cost of the project; and (3) as a result, the company would be forced to temporarily halt construction and reevaluate the Rochester Hub construction strategy.
Investors learned the truth on Oct. 23, 2023, when Li-Cycle announced that it would halt construction at the Rochester Hub pending a comprehensive review of the project, including construction strategy, even though “engineering and procurement for the project are largely complete.” The company blamed the decision on “escalating construction costs” and said it “expects the aggregate cost for the current scope of the project to exceed its previously disclosed guidance.” This news drove the price of Li-Cycle shares down $1.04, or about 45%, on Oct. 23, 2023.
Most recently, on Nov. 13, 2023, Li-Cycle announced that “[i]n conjunction with the pause in the Rochester Hub project announced in late October, we have initiated a comprehensive review” and “we are taking steps to conserve cash.” The chairman of Rochester-based Brighton Securities reportedly said he would not be surprised if Li-Cycle announces bankruptcy in the near future. This news drove the price of Li-Cycle shares down over 60% during intra-day trading on Nov. 14, 2023.
“We’re focused on investors’ losses and are investigating whether Li-Cycle intentionally misled investors about the Hub being on track with budget and schedule,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Li-Cycle Holdings and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Li-Cycle case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Li-Cycle Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LICY@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Past results do not guarantee future outcomes.
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Reed Kathrein, 844-916-0895
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