Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against PureCycle Technologies, Inc. (NASDAQ: PCT) (“PureCycle”) f/k/a Roth CH Acquisition I Co. (“Roth Acquisition”) (NASDAQ: ROCH) and certain of its officers, alleging violations of federal securities laws. If you purchased PureCycle securities between November 16, 2020 and May 5, 2021 (the “Class Period”), and have suffered a loss, you are encouraged to contact Jonathan Zimmerman for additional information at (888) 398-9312 or email@example.com.
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 complaint alleges that throughout the Class Period, the PureCycle 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.
On May 6, 2021, before the market opened, the stock research firm Hindenburg Research published a detailed report, supported by multiple former employees and industry experts. The report revealed that the management team had, among other things, based their financial projections on “wild guessing,” sought to generate ~$90 million in cash flow and tradeable shares before the company created any revenue itself, and had exaggerated the merits of its patent that actually a “‘regurgitation’ of prior art.”
On 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%.
What You Can Do
If you purchased PureCycle securities between November 16, 2020 and May 5, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or firstname.lastname@example.org. The lead plaintiff deadline is July 12, 2021.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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