NEW YORK--(BUSINESS WIRE)--#Class--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY) on behalf of Li-Cycle stockholders. Our investigation concerns whether Li-Cycle has violated the federal securities laws and/or engaged in other unlawful business practices.
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On March 24, 2022, Blue Orca Capital published a report (the "Report") characterizing the Company as "a near fatal combination of stock promotion, laughable governance, a broken business hemorrhaging cash, and highly questionable Enron-like accounting." According to the Report, “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.”
On this news, Li-Cycle’s stock price fell $0.47 cents per share, or 5.60% to close at $7.93 per share on March 24, 2022.
If you purchased or otherwise acquired Li-Cycle shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com
