SAN FRANCISCO , April 22, 2022 /PRNewswire/ -- Hagens Berman urges Li-Cycle Holdings Corp. (NYSE: LICY) investors with significant losses to submit your losses now.
Class Period: Feb. 16, 2021 – Mar. 23, 2022
Lead Plaintiff Deadline: June 20, 2022
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Li-Cycle Holdings Corp. (NYSE: LICY) Securities Fraud Class Action:
Li-Cycle has assured investors that its SPAC merger with Peridot in Aug. 2021 would enable it to "fully fund" its growth plans and has touted its "robust customer network" as supportive of 2021 – 2025 cumulative $985 million EBITDA (inclusive of off-take agreements with Traxys North America, which would generate $300 million/year of revenue).
The complaint alleges Defendants made misleading statements or failed to disclose: (1) Traxys, Li-Cycle's largest "customer" is merely a broker that tries to sell Li-Cycle's product to end customers; (2) Li-Cycle engaged in highly questionable related party transactions; (3) Li-Cycle's mark-to-model accounting gave a false impression of growth; (4) a significant portion of the Company's revenues were derived from simply marking up receivables on products that had not been sold; (5) Li-Cycle's gross margins have likely been negative since inception; and, (6) the Company will likely require an additional $1 billion of funding to support its planned growth.
According to the complaint, Defendants' statements were brought into...
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