- Davis v. Li-Cycle Holdings Corp., et al.
- Class Period:June 14, 2022 - October 23, 2023
- Date Filed:November 08, 2023
- Jurisdiction:U.S. District Court, Southern District of New York
- Docket Number: 1:23-cv-09894
- Lead Plaintiff Deadline: January 8, 2024
Seek Plaintiff 35
A class action lawsuit captioned Davis v. Li-Cycle Holdings Corp., et al. has been filed against Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY) and certain of the Company’s top executive officers alleging that they violated the federal securities laws. The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Li-Cycle securities between June 14, 2022, and October 23, 2023, inclusive (the “Class Period”).
Li-Cycle is a battery resource recovery company and lithium-ion battery recycler which recycles battery manufacturing scrap and end-of-life batteries to produce black mass, a powder-like substance which contains a number of valuable metals, including lithium, nickel, and cobalt. The Company seeks to open post-processing facilities to process black mass, and its first facility is being constructed in Rochester, New York (the “Rochester Hub”).
As alleged in the lawsuit, On October 23, 2023, before the market opened, Li-Cycle announced that it would halt construction work on its Rochester Hub project pending a comprehensive review of the project including construction strategy, even though “engineering and procurement for the project are largely complete.” The Company disclosed it had “recently experienced escalating construction costs” and now “expects the aggregate cost for the current scope of the project to exceed its previously disclosed guidance.” On this news, Li-Cycle shares declined by $1.04, or approximately 45.81%, to close at $1.23 per share on October 23, 2023, on unusually heavy trading volume.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s Rochester Hub was experiencing escalating construction costs; (2) that these “escalating construction costs” exceeded the expected aggregate cost of the project; (3) that, as a result, the Company would be forced to temporarily halt construction and reevaluate the construction strategy for the Rochester Hub; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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If you purchased or otherwise acquired Li-Cycle securities between June 14, 2022, and October 23, 2023, inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page.
You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at firstname.lastname@example.org.
The deadline to apply to the Court to serve as a lead plaintiff in the Li-Cycle lawsuit is January 08, 2024.