Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or acquired PureCycle Technologies, Inc. (“PureCycle”) (NASDAQ: PCT), f/k/a Roth CH Acquisition I Co. (“Roth Acquisition”) (NASDAQ: ROCH) securities between November 16, 2020 and May 5, 2021, inclusive (the “Class Period”).
PureCycle investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described above, you may no later than July 12, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
PureCycle commercializes a purification recycling technology, originally developed by The Procter & Gamble Company (“Procter & Gamble”), for restoring waste polypropylene into resin with near-virgin characteristics. Roth Acquisition was organized as a special purpose acquisition company (“SPAC”).
The Class Period commences on November 16, 2020, when PureCycle issued a press release announcing plans to become a publicly traded company via a merger with Roth Acquisition. On March 18, 2021, PureCycle and Roth Acquisition announced that their anticipated business combination had been completed after having been approved by Roth Acquisition’s stockholders at a special meeting held on March 16, 2021. Throughout the Class Period, PureCycle touted the technology it licensed from Procter & Gamble.
However, the truth was revealed before the markets opened on May 6, 2021, when analyst Hindenburg Research published a report on PureCycle entitled “PureCycle: The Latest Zero-Revenue ESG SPAC Charade, Sponsored by the Worst of Wall Street.” In the report, Hindenburg wrote, among other things, that: (1) Hindenburg “spoke with multiple former employees of” PureCycle executives’ former companies “who said PureCycle’s executives based their financial projections on ‘wild ass guessing’, brought companies public far too early, and had deceived investors”; (2) unlike most “leading plastics companies [who] publish peer reviewed studies that detail their advancements in the field,” Hindenburg was “unable to find a single peer reviewed study in any scholarly journal citing or reviewing PureCycle’s licensed process”; (3) “multiple competitors and industry experts . . . explained that PureCycle faces steep competition for high quality feedstock, and called the company’s financial projections into question”; and (4) “PureCycle represents the worst qualities of the SPAC boom; another quintessential example of how executives and SPAC sponsors enrich themselves while hoisting unproven technology and ridiculous financial projections onto the public markets, leaving retail investors to face the ultimate consequences.” Following this news, PureCycle’s stock price fell from a May 5, 2021 closing price of $24.59 per share to a May 6, 2021 closing price of $14.83, a one-day drop of approximately 40%.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the technology PureCycle licensed from Procter & Gamble was not proven and presented serious issues even at lab scale; (2) the challenges posed by the availability and competition for the raw materials necessary to commercialize the licensed technology were significant; (3) PureCycle’s financial projections were baseless; and (4) as a result, PureCycle’s public statements were materially false and misleading at all relevant times.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll-free at (844) 887-9500; or via e-mail at firstname.lastname@example.org. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.