Glancy Prongay & Murray LLP Reminds Investors of Looming Class Action Deadline… | News

LOS ANGELES, May 23, 2022 (GLOBE NEWSWIRE) — Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming June 20, 2022 deadline to file a motion by lead plaintiff in the class action lawsuit filed on behalf of investors who purchased or otherwise acquired Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY ) between February 16, 2021 and March 23, 2022 inclusive (the “Class Period”).

If you have suffered a loss on your Li-Cycle investments or would like to inquire about possible claims to recover your loss under federal securities laws, you may submit your contact information to www.glancylaw.com/cases/li-cycle-holdings-corp/. You may also contact Charles H. Linehan, of GPM at 310-201-9150, toll-free at 888-773-9224, or by email at [email protected] to find out more about your rights.

On August 10, 2021, Li-Cycle merged with special purpose acquisition company, Peridot Acquisition Corp.

On March 24, 2022, Blue Orca Capital released a report that described Li-Cycle as a “near-fatal combination of stock promotion, laughable governance, a hemorrhagic bankrupt company, and highly questionable Enron-like accounting.” “. The report also alleged, among other things, that Li-Cycle had “diverted $529,902 in investment capital to the family [] of its founders through a series of highly questionable related party payments,” and that its “cash burn is so severe and far above previous expectations” that “will require the company to raise at least $1 billion. . . largely by massively diluting current shareholders. The report further states that the company’s largest customer, Traxys, is not actually a customer, but a “dealer or marketing partner who resells Li-Cycle’s black mass to end buyers”, and that “not only Traxys is not the end buyer, but the revenue Li-Cycle recognizes is only Li-Cycle’s initial estimate of the price of the product it expects to receive from the end customer once the final transaction is completed. .

On this news, Li-Cycle’s stock fell $0.47, or 5.6%, to close at $7.93 per share on March 24, 2022, hurting investors.

The Complaint filed in this Class Action alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts regarding the business, operations and societal prospects. Specifically, defendants failed to disclose to investors that: (1) Li-Cycles’ largest customer, Traxys North America LLC, is not actually a customer, but merely a broker providing working capital to the company while Traxys tries to sell the Li-Cycles product to end customers; (2) the Company has engaged in transactions with highly questionable related parties; (3) the Company’s mark-to-model accounting is vulnerable to abuse and gives a false impression of growth; (4) a significant portion of the Company’s reported revenue was derived simply from gross up receivables on products that had not been sold; (5) the gross margins of the Company have probably been negative since its inception; (6) the Company will need an additional $1 billion in funding to support its expected growth (which is more than the Company raised through the merger); and (7) therefore, defendants’ positive statements about the company’s business, operations and prospects were materially misleading and/or lacked reasonable basis at all relevant times.

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If you purchased or otherwise acquired Li-Cycle securities during the class action period, you may apply to court no later than June 20, 2022 to request an appointment as lead plaintiff in this putative class action. To be a class member, you do not need to take any action at this time; you can retain the services of a lawyer of your choice or do nothing and remain an absentee member of the class action. If you would like to know more about this class action, or if you have any questions about this announcement or your rights or interests in the pending class action, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, CA 90067 at 310-201-9150, toll free at 888-773-9224, by email at [email protected]or visit our website at www.glancylaw.com. If requesting by email, please include your mailing address, phone number and number of shares purchased.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

contacts

Glancy Prongay & Murray LLP, Los Angeles

Charles Linehan, 310-201-9150 or 888-773-9224

[email protected]

www.glancylaw.com

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