Cohen Milstein Investigates Loop Industries, Inc. on Shareholders' Behalf

NEW YORK, NY / ACCESSWIRE / December 3, 2020 /Cohen Milstein Sellers & Toll PLLC is investigating Loop Industries, Inc. (NASDAQ:LOOP) ("Loop" or the "Company") following the filing of a class action lawsuit alleging violations of federal securities law.

If you purchased Loop shares between September 24, 2018 and October 12, 2020 (the "Class Period") and suffered an economic loss, you may wish to contact Cohen Milstein Partner Steven J. Toll at (202) 408-4600 or stoll@cohenmilstein.com to discuss your legal rights and options.

To serve as lead plaintiff, you must file a motion with the court by December 14, 2020. You are not required to file a lead plaintiff motion to take part in the litigation, however.

The lawsuit, which alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by Loop and certain of the Company's officers and directors, was filed in the U.S. District Court for the Southern District of New York by another law firm.

Loop is a technology company that purports to own proprietary technology that depolymerizes no- and low-waste PET plastic and polyester fiber. The resulting material is used to create PET resin for food-grade packaging.

The complaint alleges that defendants made false and misleading statements and/or failed to disclose that: (1) Loop scientists were encouraged to misrepresent the results of Loop's purportedly proprietary process; (2) Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) as a result, the Company was unlikely to realize the purported benefits of Loop's announced partnerships with Indorama and Thyssenkrupp; and (4) as a result of the foregoing, defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

The truth started to emerge on October 13, 2020 when Hindenburg Research published a report asserting, among other things, that the Company was doctoring lab results and that "Loop is smoke and mirrors with no viable technology." The report noted that a former Loop employee alleged that the Company's scientists were tacitly encouraged to lie about the results of the Company's process internally and that Hindenburg Research had "obtained internal documents and photographs to support their claims." The publication reported "Former employees painted a picture of a chaotic company, whose lead scientists are twenty-something ‘liars'. . . ."

On this news, Loop shares fell from $11.61 on October 12, 2020 to $7.83 on October 13, 2020.

Cohen Milstein encourages investors who acquired Loop shares or options from September 24, 2018 to October 12, 2020 or former employees with information about this matter to contact us prior to the December 14, 2020 lead plaintiff deadline.

A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your share in any recovery will not be enhanced or diminished by whether you decide to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein or other attorneys to serve as your counsel in this action or may do nothing and remain an absent class member.

Cohen Milstein has significant experience representing investors in securities class actions, having acted as lead counsel in hundreds of cases and recovered billions of dollars for plaintiffs since 1969. With more than 100 attorneys in offices in Washington, D.C., New York City, Chicago, Philadelphia, Palm Beach Gardens, Fla., and Raleigh, N.C., the firm is active in major litigation pending in federal and state courts throughout the nation. For more information visit www.cohenmilstein.com.

If you have any questions about this notice, the action, or your rights, please contact either of the following:

Steven J. Toll, Esq.
Josh Kluger
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Fifth Floor
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: stoll@cohenmilstein.com or jkluger@cohenmilstein.com

Prior results do not guarantee a similar outcome. This may be considered Attorney Advertising.

SOURCE: Cohen Milstein Sellers & Toll PLLC