SAN FRANCISCO, May 16, 2021 (GLOBE NEWSWIRE) — Hagens Berman urges PureCycle Technologies, Inc. (NASDAQ: PCT) investors with significant losses to submit your losses now. A class action has been filed and certain investors may have valuable claims.
PureCycle Technologies, Inc. (NASDAQ: PCT) Securities Fraud Action:
The case centers on Defendants’ repeated false claims that PureCycle is an environmental, social and governance (“ESG”) company that is commercializing a proven patented purification recycling technology developed by Proctor & Gamble for restoring waste polypropylene into resin with near-virgin characteristics.
The complaint alleges Defendants concealed that (1) the licensed P&G technology is not proven and has serious issues even at lab level, (2) challenges posed by competition for- and availability of- raw materials necessary for successful commercialization of the technology are significant, and (3) PureCycle’s financial projections are baseless.
The truth emerged on May 6, 2021, when analyst Hindenburg Research published a scathing report entitled “PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored By The Worst Of Wall Street.” Among other things, Hindenburg challenges the validity of PureCycle’s technology and purported access to feedstock to run PCT process economically. Hindenburg also takes issue with PureCycle’s aggressive financial projections, its purported recycling partnerships with well-known companies like L’Oreal and Total, and the track record of the SPAC sponsors.
In response to this news, the price of PureCycle shares crashed lower.
“We’re focused on investors’ losses and proving PureCycle engaged in greenwashing,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a PureCycle 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 PureCycle 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 PCT@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895