Li-Cycle Holdings Corp LICY Embroiled in Securities Fraud Litigation Over Cost Misrepresentation

Hagens Berman has issued an alert to investors of Li-Cycle Holdings Corp LICY who have suffered significant losses, encouraging them to come forward and submit details of their losses. The alert follows a lawsuit alleging that Li-Cycle misrepresented the financial realities concerning their Rochester Hub, misleading shareholders about the project's cost and timeline.

Allegation Details Against Li-Cycle

The lawsuit focuses on the company's declarations regarding the Rochester Hub, where they have repeatedly assured investors that the project was on schedule and on budget for its expected commissioning late in 2023. However, the claim asserts that LICY did not disclose the truth regarding spiraling construction costs that surpassed initial project cost estimations, ultimately leading to a halt in the construction process for reevaluation of the strategy.

Impact on Investors

The impact of the announcement concerning the halting of the project on October 23, 2023, was significant. LICY's shares plummeted by approximately 45%, equating to a $1.04 drop in value, as the company cited rising construction costs and forecasted that total expenditure would exceed past guidance. Investors were taken by surprise, a reaction that the lawsuit contends was the result of inaccurate and misleading statements by Li-Cycle concerning the project's status.

Legal Recourse for Shareholders

Hagens Berman is centering the investigation on the losses suffered by investors and probing into whether LICY intentionally deceived shareholders about the Rochester Hub's adherence to budget and schedule. The firm is calling for investors who have incurred substantial losses to contact them and is also looking for whistleblowers with non-public information that might further the investigation leading up to the January 8, 2024, lead plaintiff deadline.

Whistleblower Incentives and Assistance

To bolster their case, Hagens Berman is reaching out to individuals who might possess insider information related to Li-Cycle's operations or disclosures. The SEC Whistleblower program potentially offers substantial rewards, up to 30% of successful recoveries, to whistleblowers providing valuable information. Hagens Berman has positioned itself to support whistleblowers through this process.

About Hagens Berman

Hagens Berman is an internationally recognized law firm known for representing plaintiffs in complex litigation regarding corporate accountability. The firm's practices include securities law and it has successfully represented investors, whistleblowers, and others harmed by corporate negligence and fraud.

Lawsuit, Securities, Fraud