- Southgate v. PureCycle Technologies, Inc., et al.
- Class Period:August 08, 2023 - September 13, 2023
- Date Filed:September 29, 2023
- Jurisdiction:U.S. District Court, Southern District of New York
- Docket Number: 1:23-cv-08605
- Lead Plaintiff Deadline: November 28, 2023
Seek Plaintiff 0
A class action lawsuit, captioned Southgate v. PureCycle Technologies, Inc., et al., has been filed against PureCycle Technologies, Inc. (“PureCycle” or the “Company”) (NASDAQ: PCT) and certain of its top current and/or former executive officers alleging violations of federal securities laws. The lawsuit seeks to represent purchasers or acquirers other than Defendants that purchased or otherwise acquired PureCycle securities between August 8, 2023, and September 13, 2023, inclusive (the “Class Period”).
PureCycle claims it is commercializing a patented purification recycling technology, originally developed by P&G, for restoring waste polypropylene into resin with near virgin characteristics, called ultra-pure recycled resin. In early 2023, PureCycle claimed that it was finalizing construction and commissioning at the Ironton Facility, “which is expected to have capacity of approximately 107 million pounds/year when fully operational.”
The complaint alleges that on September 13, 2023, after the market closed, PureCycle disclosed that its Ironton Facility experienced a full plant power outage on August 7, 2023, which required the Ironton Facility to halt operations. The Company further disclosed that it replaced a seal that purportedly failed as a result of the power outage, and initiated facility restart procedures on September 11, 2023. On this news, PureCycle’s stock price fell $1.395, or 18.4%, to close at $6.18 per share on September 14, 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: (i) that the Ironton Facility experienced a full plant power outage on August 7, 2023; (ii) that there was a risk of additional failures resulting from the August 7, 2023 power outage; and (iii) 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 PureCyle Technologies securities between August 8, 2023 and September 13, 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 submit an application with the Court to serve as a lead plaintiff in the PureCycle lawsuit is November 28, 2023.