Li-Cycle Holdings Corp. (LICY) Securities Fraud Class Action

The litigation focuses on Li-Cycle’s assurances concerning its development of the first commercial hydrometallurgical resource recovery facility in North America (the “Rochester Hub”).

More specifically, during the Class Period, Li-Cycle has repeatedly said the Rochester Hub was “on track” for both project budget and schedule to commence commissioning in late 2023.

The complaint alleges that Li-Cycle mispresented and concealed that: (1) the Rochester Hub was experiencing escalating construction costs; (2) these escalating costs exceeded the expected aggregate cost of the project; and (3) as a result, the company would be forced to temporarily halt construction and reevaluate the Rochester Hub construction strategy.

Investors learned the truth on Oct. 23, 2023, when Li-Cycle announced that it would halt construction at the Rochester Hub pending a comprehensive review of the project, including construction strategy, even though “engineering and procurement for the project are largely complete.” The company blamed the decision on “escalating construction costs” and said it “expects the aggregate cost for the current scope of the project to exceed its previously disclosed guidance.”

This news drove the price of Li-Cycle shares down $1.04, or about 45%, on Oct. 23, 2023.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the LICY securities class-action case about?

This lawsuit on behalf of investors nationwide focuses on Li-Cycle’s assurances concerning its development of the first commercial hydrometallurgical resource recovery facility in North America (the “Rochester Hub”). 

WHAT SHOULD I DO?

I worked at LICY. What should I do?

If you were an employee of LICY during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or LICY@hbsslaw.com.

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICPATE?

Am I affected? What do I need to do to participate?

If you were an investor in LICY during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any LICY investor participate?

In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.