OAKLAND, Calif.--(BUSINESS WIRE)--PureCycle Technologies, Inc. shares plunged 40% in intraday trading on May 6, 2021 after a report by Hindenburg Research alleged the plastics recycling SPAC has “deceived investors” with financial projections that are nothing more than “wild ass guessing,” and that its two sponsoring investment banks have issued “Buy” ratings with high target prices after previously receiving millions of ‘founders’ shares for roughly a penny per share. Gibbs Law Group is investigating a potential Pure Cycle Securities Class Action Lawsuit on behalf of investors who lost money in PureCycle Technologies, Inc. (NASDAQ:PCT).
To speak with an attorney regarding this class action lawsuit investigation, click here or call (888) 410-2925.
On Thursday May 6, 2021, Hindenburg Research released a report alleging that PureCycle has earned zero revenue to date, and that its CEO and executives reportedly have a track record of failures. Specifically, the report alleges that of the six companies PureCycle’s executives previously took public, two went bankrupt, three were delisted, and one was acquired after a ~95% decline. Further, the executives already received $7 million in cash bonuses after closing the SPAC deal and will soon receive approximately $40 million more, according to the report.
PureCycle’s two investment bank sponsors, Roth Capital and Craig Hallum Capital, are also the only investment banks that have issued research on PureCycle, according to Hindenberg Research, and have a history of affiliating with clients entangled with allegations of fraud. Because SPACs are subject to less stringent regulations than IPOs, PureCycle sponsor Craig Hallum Capital was allegedly able to issue a “Buy” rating on the very day of PureCycle’s SPAC merger, instead of having to observe a “quiet period” before issuing any public comment—calling into question whether the rating had an undue influence on the price.
Hindenburg also reports that unlike many other plastics companies, PureCycle’s licensed process hasn’t been cited or reviewed in any peer reviewed studies.
On this news, PureCycle’s stocks plummeted 40% in intraday trading on Thursday May 6, 2021, causing significant harm to investors.
What Should PureCycle Investors Do?
If you invested in PureCycle, 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 PureCycle Technologies, 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,” “Class Action Practice Group of the Year,” “Consumer Protection MVP,” and “Top Cybersecurity/ Privacy Attorneys Under 40.”
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