SAN FRANCISCO, March 25, 2022 (GLOBE NEWSWIRE) -- Hagens Berman urges Li-Cycle Holdings Corp. (NYSE: LICY) investors who suffered significant losses to submit your losses now. The firm is investigating possible securities law violations and certain investors may have valuable claims.
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Li-Cycle Holdings Corp. (NYSE: LICY) Investigation:
In the past, Li-Cycle has claimed the company’s financial statements presented fairly, in all material respects, the financial position of Li-Cycle in conformity with International Financial Reporting Standards.
These and other claims came into question on March 24, 2022, when Blue Orca Capital published a scathing report questioning in part Li-Cycle’s revenue recognition practices.
Among other things, Blue Orca concluded: (1) “Li-Cycle’s accounting is reminiscent of Enron – as a significant portion of the Company’s revenues are not derived from bona fide sales of recycled product to end customers, but rather Li-Cycle’s provisional estimates of the value of such product delivered to its brokers;” (2) “[w]e calculate that 45% of Li-Cycle’s reported revenues in the last quarter were derived from simply marking up receivables on products that had not been sold;” (3) “Li-Cycle in effect uses mark-to-model accounting, pulling sales forward from future periods and recognizing revenues based on its own self-serving estimates;” and, (4) “[w]e question whether this highly aggressive accounting caused Li-Cycle’s auditor and CFO resign.”
In response, the price of Li-Cycle shares fell sharply.
“We’re focused on investors’ losses and whether Li-Cycle may have cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Li-Cycle and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Li-Cycle should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LICY@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
