Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.
On Thursday, May 6, 2021, Hindenburg Research reported that plastics recycling company PureCycle Technologiesuses unproven technology to patent its products and has “deceived investors” through financial projections based on “wild ass guessing.”
Following this report, PureCycle stock plummeted 40% on Thursday, May 6, 2021, causing significant harm to investors. If you invested in PCT, you may have a claim.
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PCT Stock Drops 40% Following Report
Hindenburg research reports that PureCycle has allegedly earned zero revenue to date, and its CEO and executives reportedly have a track record of failures: of the six companies PureCycle’s executives previously took public, two went bankrupt, three were delisted, and one was acquired after a ~95% decline. Further, former employees of these earlier failed companies claim that PureCycle’s financial projections are based on nothing more than guesswork.
In addition, the Company’s two sponsoring investment banks, Roth Capital and Craig Hallum Capital, are also the only investment banks that have issued research on PureCycle, and each bank has a history of affiliating with clients entangled with allegations of fraud. Both Roth Capital and Craig Hallum Capital have issued “Buy” ratings for PureCycle with high target prices after previously receiving millions of founders’ shares for roughly a penny per share.
According to the report, Hindenburg Research consulted with plastics experts who claim that the science behind PureCycle’s technology is “vague,” and that none of its technology has been cited or reviewed in any peer reviewed studies.
On this news, PCT’s stock dropped 40% on Thursday, May 6, 2021, closing at $14.80 per share, causing significant harm to investors.
If you invested in PCT stock, you may have a legal claim. Contact our securities lawyers today for a free and confidential consultation.
SPACs Raise Billions in 2021 but Face Lawsuits and SEC Scrutiny
SPACs, or special purpose acquisition companies, are commonly known as “blank check” shell companies. SPACs provide an alternative to the traditional IPO process, and serve the primary purpose of raising investor proceeds to eventually acquire a private company. Investors typically buy into a SPAC before it announces, or even decides, which private company it will attempt to acquire.
While SPAC investors have the potential to realize significant gains, they are also much more vulnerable to market volatility and other types of fraud. Investors may be vulnerable to a variety of SPAC fraud by sponsors, including:
- Misrepresenting material facts related to the SPAC or the company to be acquired;
- Failing to properly investigate or conduct due diligence on the company to be acquired; or
- Engaging in self-dealing or failing to disclose conflicts of interest with the acquisition company.
SPACs have recently come under SEC scrutiny and investor lawsuits against SPACs are on the rise. According to MarketWatch, many of these lawsuits allege SPAC directors failed to disclose sufficient information about the companies they intended to merge with.
Our Securities Lawyers Have a Winning Record Against Companies Like PureCycle
Our securities lawyers have recovered over a billion dollars on behalf of our clients against behemoths, such as Chase Bank, Mastercard, and Anthem Blue Cross Blue Shield. Read more about our results.
You “shouldn’t presume that powerful banks and other powerful interests can just get away with doing bad things. Good, qualified counsel that are committed to a cause can usually figure out how to prosecute such cases effectively and prevail.”
–Eric Gibbs, award-winning securities attorney
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Federal judge in our AT&T class action:
“I’ve always found them to be extraordinary counsel in terms of their preparation and their professionalism.”
Federal judge in our Chase lawsuit (resulting in $100 million settlement):
They “fought tooth and nail, down to the wire” to achieve “the best settlement that they could under the circumstances.”
Read more about what judges say about us.
Our Featured Securities Team
Eileen works closely with investors in securities cases and has over a decade of experience in the legal world. She received her law degree from American University in 2005.
David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.
Kyla Gibboney represents plaintiffs in antitrust cases and other complex class actions. Northern California Super Lawyers has named her a Rising Star (2018-2020).
Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.
Gibbs Law Group's Financial Fraud Experience
We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).
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