RADNOR, Pa., May 15, 2021 /PRNewswire/ — 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 firstname.lastname@example.org; or click https://www.ktmc.com/purecycle-technologies-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=purecycle
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.
PureCycle investors may, no later than July 12, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
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SOURCE Kessler Topaz Meltzer & Check, LLP