Shareholder Alert: Robbins LLP Informs Investors of Class Action Against Li-Cycle Holdings Corp. (LICY) f/k/a Peridot Acquisition Corp. (PDAC)

SAN DIEGO--(BUSINESS WIRE)--The Class: Shareholder rights law firm Robbins LLP informs investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Li-Cycle Holdings Corp. (NYSE: LICY) securities between February 16, 2021 and March 23, 2022, for violations of the Securities Exchange Act of 1934. Li-Cycle purports to be an industry leader in lithium-ion battery resource recovery and the leading lithium-ion battery recycler in North America.

If you would like more information about Li-Cycle Holdings Corp.'s misconduct, click here.

What is this Case About: Li-Cycle Holdings Corp. (LICY) Failed to Disclose its Business Failings to Investors

According to the complaint, Li-Cycle merged with Peridot Acquisition Corp., a special purpose acquisition company, on August 10, 2021. During the class period, defendants touted Li-Cycle's patented technology and noted that the merger would enable Li-Cycle "to fully fund its planned global expansion." However, defendants failed to disclose that Li-Cycle's largest customer was merely a broker providing working capital financial to the Company while trying to sell the product to end customers. Further, Li-Cycle engaged in questionable related party transactions. With regard to accounting, the Company gave a false impression of growth, reported revenues derived by marking up receivables on unsold products, and concealed that the Company would need an additional $1 billion to support planned growth.

The truth came to light on March 24, 2022, when market researcher Blue Orca Capital released a report describing the Company as "a near fatal combination of stock promotion, laughable governance, a broker business hemorrhaging cash, and highly questionable Ernon-like accounting" and detailing the Company's failings. On this news, Li-Cycle's shares fell approximately 5.6%, to close at $7.93 per share on March 24, 2022.

Next Steps: If you acquired shares of Li-Cycle Holdings Corp. (LICY) between February 16, 2021 and March 23, 2022, you have until June 20, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

Contact us to learn more:

Aaron Dumas
[phone]
[e-mail]
Shareholder Information Form

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Li-Cycle Holdings Corp. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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