OAKLAND, Calif.--(BUSINESS WIRE)--Loop Industries, Inc. shares plummeted more than 32% today after Hindenburg Research released a scathing report claiming that the plastics recycling company has no viable technology. Gibbs Law Group is investigating a potential Loop Industries Class Action Lawsuit on behalf of investors who lost money in Loop Industries, Inc. (NASDAQ:LOOP).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Tuesday October 13, 2020, Hindenburg Research released a report alleging that Loop Industries, Inc. has misled investors and major corporate partners about its ability to recycle a clear lightweight form of plastic called PET, commonly found in drink bottles and other food and beverage packaging. According to the report, several former Loop employees insist that the company’s plastic recycling claims are technically and industrially “impossible.”
The report alleges that Loop’s lead scientists are family members with no formal chemistry education who operate in a second, secret lab that is off-limits to rank and file workers. According to the report, former scientists at Loop say they were never allowed to see the lead scientists’ methods and were pressured to lie about their own results. While Loop claimed in a June 2016 report that it could break PET down into its base chemicals at a recovery rate of 100%, a former employee quoted in the Hindenburg report insists that by October 2016, the company couldn’t even repeatably achieve a recovery rate above 90%.
On this news, Loop’s stock dropped more than 32% by close of trading on Tuesday October 13, 2020, causing significant harm to investors.
What Should Loop Investors Do?
If you invested in Loop, visit our website or contact our securities team directly at (888) 410-2925 to discuss how you may be able to recover your losses. Our investigation concerns whether Loop Industries, Inc. has violated federal securities laws.
About Gibbs Law Group
Gibbs Law Group represents individual and institutional investors throughout the country in securities litigation to correct abusive corporate governance practices, breaches of fiduciary duty, and proxy violations. The firm has recovered over a billion dollars for its clients against some of the world’s largest corporations, and our attorneys have received numerous honors for their work, including “Best Lawyers in America,” “Top Plaintiff Lawyers in California,” “California Lawyer Attorney of the Year,” “Top Class Action Attorneys Under 40,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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