Investors with losses of $100,000 or more are encouraged to c lick here to contact the firm.
LOS ANGELES, Oct. 19, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Loop Industries, Inc. (NASDAQ: LOOP) investors that the firm has initiated an investigation into alleged violations of securities laws, and may file a lawsuit on behalf of investors.
Investors are encouraged to contact attorney Lesley F. Portnoy , by phone 310-692-8883 or email : lesley@portnoylaw.com, to discuss their legal rights, including eligibility for appointment as a class representative. Class representatives are appointed by the court to act as a fiduciary on behalf of other injured investors.
The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Loop is the subject of a report issued by Hindenburg Research on October 13, 2020. The report, titled "Loop Industries: Former Employees and Plastics Experts Blow The Whistle On This 'Recycled' Smoke And Mirrors Show," alleges that "a former Loop employee told us that Loop's scientists, under pressure from CEO Daniel Solomita, were tacitly encouraged to lie about the results of the company's process internally. We have obtained internal documents and photographs to support their claims." Hindenburg writes that "according to a former employee, Loop's previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were 'technically and industrially impossible.'" The report also alleges that "Executives from a division of key partner Thyssenkrupp, who Loop entered into a 'global alliance agreement' with in December 2018, told us their partnership is on 'indefinite' hold and that Loop 'underestimated' both costs and complexities of its process." Based on this report, shares of Loop fell by more than 31% in intraday trading.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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