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NEW YORK, May 14, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against PureCycle Technologies, Inc. (“PureCycle” or the “Company”) (NASDAQ: PCT) in the United States District Court for the Middle District of Florida on behalf of those who purchased or acquired the securities of PureCycle between November 16, 2020 through May 5, 2021, inclusive (the “Class Period”). The lawsuit seeks to recover damages for investors under the federal securities laws.
The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the technology PureCycle licensed from Procter & Gamble is not proven and presents serious issues even at lab scale; (2) the challenges posed by the availability and competition for the raw materials necessary to commercialize the licensed technology are significant; (3) PureCycle’s financial projections are baseless; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On May 6, 2021, Hindenburg Research published a report on PureCycle entitled “PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored by the Worst of Wall Street.” Among the allegations in the report were that “PureCycle’s executives based their financial projections on ‘wild ass guessing,’ brought companies public far too early, and had deceived investors.” The Report also stated that Hindenburg was “unable to find a single peer reviewed study in any scholarly journal citing or reviewing PureCycle’s licensed process,” contrary to the norm in the field. Furthermore, Hindenburg spoke to a “30-year expert on polymers” who “referred to the company’s flammable pressurized process as a ‘bomb’ and warned about the company forging ahead to commercial scale despite having issues at a lab scale.”
On this news, the Company’s stock price fell from its May 5, 2021 closing price of $24.59 per share to a May 6, 2021 closing price of $14.83, which represents a one-day drop of approximately 40%.
Investors who purchased or otherwise acquired shares of PureCycle during the Class Period should contact the Firm prior to the July 12, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
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