LICY Shareholder News: Johnson Fistel Encourages Li-Cycle Shareholders with Losses to Contact the Firm Regarding Investigation
SAN DIEGO, March 24, 2022 (Newsfile)—
Shareholder rights law firm Johnson Fistel, LLP (www.JohnsonFistel.com) is investigating whether Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY), any of its executive officers, or others violated securities laws by misrepresenting or failing to timely disclose material, adverse information to investors. The investigation focus on investors’ losses and whether they may be recovered under the federal securities laws.
What if I purchased Li-Cycle common stock? If you purchased Li-Cycle common stock and suffered significant losses on your investment, join our investigation now:
- Click or paste the following web address into your browser to submit your losses: https://www.cognitoforms.com/JohnsonFistel/LiCycleHoldingsCorp
- Or for more information, contact Jim Baker at firstname.lastname@example.org or (619) 814-4471
There is no cost or obligation to you.
What is Johnson Fistel investigating? On March 24, 2022, Blue Orca released a short report regarding Li-Cycle’s operations. Blue Orca stated “In our opinion, Li-Cycle recognizes revenues using an Enron-like mark-to-model accounting gimmick. Li-Cycle recognizes revenues months prior to the actual sales of its recycled black mass, based on its own provisional estimate of the future value of the product. This accounting treatment is plainly vulnerable to abuse, giving Li-Cycle discretion over its reported revenues. We suspect that under this framework, Li-Cycle marks up the value of its receivables on unsold products and runs the gains through its revenue line. In the most recent quarter, we calculate that 45% of Li-Cycle’s revenues were derived from simply marking up receivables on products that had not been sold. We suspect that such questionable accounting could explain why Li-Cycle’s CFO and auditor resigned in January 2022, mere months after the Company went public.” The report additionally added, “Even by SPAC standards, Li-Cycle is a governance nightmare. Its founder is a serial penny stock promoter recently sanctioned by Canadian authorities and its management team diverted half a million in shareholder money to enrich their entourage with wasteful spending, including tens of thousands of dollars on leather goods purchased from the CEO’s family. Li-Cycle’s cash burn is so severe and far above previous guidance that analysts have already downgraded the stock and told the market to expect Li-Cycle to raise at least $1 billion through debt and dilutive equity issuances.”
What if I have relevant nonpublic information? Individuals with nonpublic information regarding the company should consider whether to assist our investigation or take advantage of the SEC Whistleblower program. Under the SEC program, whistleblowers who provide original information may, under certain circumstances, receive rewards totaling up to thirty percent of any successful recovery made by the SEC. For more information, contact Jim Baker at (619) 814-4471 or email@example.com.
See the original press release here.
About Johnson Fistel, LLP. Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in securities class action and derivative lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.