LOOP Investor Update: Company Receives SEC Subpoena; Glancy Prongay & Murray LLP Filed First Securities Fraud Class Action Against Loop Industries, Inc.

·4-min read

Glancy Prongay & Murray LLP ("GPM") reminds investors of the upcoming December 14, 2020 deadline to file a lead plaintiff motion in the securities fraud class action filed on behalf of investors who purchased or otherwise acquired Loop Industries, Inc. ("Loop" or the "Company") (NASDAQ: LOOP) securities between September 24, 2018 and October 12, 2020, inclusive (the "Class Period").

If you suffered a loss on your Loop investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your information at https://www.glancylaw.com/cases/loop-industries-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On October 13, 2020, Hindenburg Research published a report alleging, among other things, 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." The report also stated that "Loop’s previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were ‘technically and industrially impossible,’" according to a former employee. Moreover, the report alleged 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."

On this news, the Company’s stock price fell $3.78, or over 32%, to close at $7.83 per share on October 13, 2020, thereby injuring investors.

Then, on October 16, 2020, after the market closed, Loop disclosed that it had received a subpoena from the U.S. Securities and Exchange Commission ("SEC") for information "regarding testing, testing results and details of results from [Loop’s] Gen I and Gen II technologies and certain of [its] partnerships and agreements."

On this news, the Company’s stock price fell as much as 7% in intraday trading on October 19, 2020, the first trading session after the SEC subpoena was disclosed.

The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process; (2) that Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) that, as a result, Loop was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp; and (4) that, 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.

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If you purchased or otherwise acquired Loop securities during the Class Period, you may move the Court no later than December 14, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles H. Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201019005692/en/

Contacts

Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
www.glancylaw.com
shareholders@glancylaw.com