Li-Cycle Shareholder Notice
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Li-Cycle To Contact Him Directly To Discuss Their Options
NEW YORK, NY - ( NewMediaWire ) - May 05, 2022 - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY).
If you suffered losses exceeding $50,000 investing in Li-Cycle stock or options and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330(Ext. 1310). You may also click here for additional information: www.faruqilaw.com/LICY.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
On March 24, 2022, Blue Orca released a short report regarding Li-Cycle’s operations. Blue Orca stated “In our opinion, Li-Cycle recognizes revenues using an Enron-like mark-to-model accounting gimmick. Li-Cycle recognizes revenues months prior to the actual sales of its recycled black mass, based on its own provisional estimate of the future value of the product. This accounting treatment is plainly vulnerable to abuse, giving Li-Cycle discretion over its reported revenues. We suspect that under this framework, Li-Cycle marks up the value of its receivables on unsold products and runs the gains through its revenue line. In the most recent quarter, we calculate that 45% of Li-Cycle’s revenues were derived from simply marking up receivables on products that had not been sold. We suspect that such questionable accounting could explain why Li-Cycle’s CFO and auditor resigned in January 2022, mere months after the Company went public.” The report additionally added, “Even by SPAC standards, Li-Cycle is a governance nightmare. Its founder is a serial penny stock promoter recently sanctioned by Canadian authorities and its management team diverted half a million in shareholder money to enrich their entourage with wasteful spending, including tens of thousands of dollars on leather goods purchased from the CEO’s family. Li-Cycle’s cash burn is so severe and far above previous guidance that analysts have already downgraded the stock and told the market to expect Li-Cycle to raise at least $1 billion through debt and dilutive equity issuances.”
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