HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Loop Industries (LOOP) Investors with Losses to Contact Its Attorneys, Firm Investigating Possible Securities Fraud
October 13, 2020 at 17:01 PM EDT
SAN FRANCISCO, Oct. 13, 2020 /PRNewswire/ -- Hagens Berman urges Loop Industries, Inc. (NASDAQ: LOOP) investors with significant losses to submit your losses now. The firm is investigating possible securities fraud and certain investors may have valuable claims.
Loop (LOOP) Investigation:
The investigation centers on the accuracy of Loop's statements concerning its purportedly "proven" technology that breaks down PET (polyethylene terephthalate) - the cheap plastic often used for packaging food and beverages – for recycling.
Loop has enticed investors by claiming that with its "breakthrough" and "revolutionary technology all waste PET plastic can be up-cycled." Indeed, in the company's June 15, 2016 annual report, it claimed to be breaking PET down into base chemicals at a recovery rate of "100%." The company has also promoted its agreements with major manufacturers, including Coca-Cola, PepsiCo, Evian, L'Oréal, and L'Occitane.
But, on Oct. 13, 2020, analyst Hindenburg Research published a scathing report, claiming that "Loop is smoke and mirrors with no viable technology." Using information collected from former Loop employees, plastics experts, competitors, and company partners, Hindenburg alleges that the company's technology is no more efficient or cost effective than traditional PET recycling methods. In fact, Hindenburg claims that former employees confirmed that (i) Loop's "claim of a 100% recovery was 'technically impossible' and 'industrially impossible;'" (ii) Loop produced false laboratory results from a company laboratory made off limits to certain employees; and (iii) Loop CEO Daniel Solomita pressured employees to lie about the company's technology. Hindenburg further said that Loop had never generated any revenue and that nothing had materialized from its announced partnerships
Following Hindenburg's report, the price of Loop shares crashed on Oct. 13, 2020.
"We're focused on investors' losses and whether Loop inflated its technological capabilities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Loop Industries investor and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Loop Industries 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 LOOP@hbsslaw.com.
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
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SOURCE Hagens Berman Sobol Shapiro LLP