BOSTON, Oct. 13, 2020 (GLOBE NEWSWIRE) — This morning, analyst Hindenburg Research published a report concerning Loop Industries, Inc. (NASDAQ: LOOP), in which Hindenburg concluded that Loop “is smoke and mirrors with no viable technology.” Hindenburg concluded that “Loop’s claimed breakthroughs in PET plastic recycling are fiction.” This news stunned the market, causing Loop shares to plummet by approximately 35%.
Loop refers to itself as a technology company whose “mission is to accelerate the world’s shift toward sustained PET plastic and polyester fiber.” According to Hindenburg, however, a former Loop employee told Hindenburg that Loop’s scientists, under pressure from the company’s CEO, were tacitly encouraged to lie about the results of the company’s process internally. Hindenburg wrote that it “obtained internal documents and photographs to support” those claims. Hindenburg further stated that according to a former employee, Loop’s previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were “technically and industrially impossible.” As part of its investigation, Hindenburg stated that it interviewed former employees, competitors, industry experts, and company partners.
Block Leviton LLP (www.blockleviton.com), a national securities litigation firm, is investigating whether Loop and certain of its executives may be liable for securities fraud. If you purchased or acquired shares of Loop and have questions about your legal rights or possess information relevant to these investigations, please contact Block Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or at https://www.blockleviton.com/cases/loop.
Block Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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SOURCE: Block Leviton LLP
www.blockleviton.com