GRABAR LAW OFFICE INVESTIGATES CLAIMS AGAINST OFFICERS AND DIRECTORS OF LOOP INDUSTRIES, INC. (NASDAQ: LOOP)
Grabar Law Office is investigating potential claims on behalf of Loop Industries, Inc. (NASDAQ: LOOP) shareholders. The investigation concerns whether certain officers and director of Loop have breached their fiduciary duties owed to the company.
Loop Industries, Inc. is a technology company that purports to own proprietary technology that depolymerizes no- and low-waste PET plastic and polyester fiber. The resulting material is used to create PET resin for food-grade packaging.
The underlying securities fraud class action complaint alleges that Loop, through certain of its officers and directors 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, the securities fraud complaint alleges Defendants failed to disclose to investors: (1) that Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process; (2) that Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) that, as a result, the Company was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp; 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.
On March 4, 2022, the parties notified the Court that they had reached an agreement-in-principle to settle the action. The parties entered into a Stipulation and Agreement of Settlement on May 17. On September 16, the Court granted preliminary approval of the Settlement. On January 5, 2023, the Court granted final approval of the Settlement.
Current long-term Loop Industries shareholders who have held shares since at least September 24, 2018 can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, at no cost to you, you are encouraged to contact us at firstname.lastname@example.org, or call Joshua Grabar at 267-507-6085.