Kessler Topaz Meltzer & Check, LLP Reminds Investors of Deadline for Securities Fraud Class Action Lawsuit Filed Against PureCycle Technologies, Inc.
The law firm of Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed against PureCycle Technologies, Inc. (NASDAQ: PCT) (“PureCycle”) f/k/a Roth CH Acquisition I Co. (“Roth Acquisition”) (NASDAQ: ROCH) on behalf of those who purchased or acquired PureCycle securities between November 16, 2020 and May 5, 2021, inclusive (the “Class Period”).
Deadline Reminder: Investors who purchased or acquired PureCycle securities during the Class Period may, no later than July 12, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation 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; via e-mail at email@example.com; or click https://www.ktmc.com/purecycle-technologies-class-action-lawsuit?utm_s ...
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%.