PURECYCLE TECHNOLOGIES, INC. – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against PureCycle Technologies, Inc. (“PureCycle” or “the Company”) (NASDAQ: PCT) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired PureCycle securities from August 8, 2023 through September 13, 2023 (the “Class Period”). Investors who acquired PureCycle securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is November 28, 2023.
The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased PureCycle securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.
ALLEGATIONS AGAINST PURECYCLE TECHNOLOGIES, INC.
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: (1) that the Ironton Facility experienced a full plant power outage on August 7, 2023; (2) that there was a risk of additional failures resulting from the August 7, 2023 power outage; and (3) 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.
ABOUT PURECYCLE TECHNOLOGIES, INC.
- PureCycle Technologies has developed a patented recycling process, initially licensed by Procter & Gamble (P&G) and later commercialized by PureCycle. This process effectively removes color, odor, and other contaminants from plastic waste, transforming it into Ultra-Pure Recycled (UPR) resin with properties similar to virgin plastic. This innovation addresses the challenge of recycling polypropylene (PP), a commonly used plastic with a low reclamation rate worldwide.
- PP production, which has grown by an average of 5% annually in recent years, generates approximately 170 billion pounds of plastic waste each year. Due to consumer demand, sustainability commitments by multinational corporations, and regulatory restrictions on non-recycled plastics, there is significant interest in PureCycle’s UPR resin. Currently, there is a shortage of UPR resin in the market, and PureCycle is the first company to focus exclusively on recycling PP into high-value, consumer-facing applications.
- PureCycle has formed strategic partnerships and supply agreements throughout the plastics industry, involving resin producers, converters, and consumer brands. Their work falls under the environmental and facilities services sector, specifically in the industrials industry, with a NAICS classification of Custom Compounding of Purchased Resins (325991). Their SIC codes include Refuse Systems (4953) and Scrap and Waste Materials (5093).
JOIN THIS CASE
It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in PureCycle during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is November 28, 2023. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.
Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.
Investors who believe they may qualify as potential class members in the class action lawsuit against PureCycle are strongly encouraged to reach out directly to the firm for further information and assistance. The knowledgeable legal professionals at Twersky Law Group stand ready to provide guidance and support to investors seeking to protect their rights and pursue the recovery they deserve.
