Securities litigation partner James (Josh) Wilson encourages investors who have suffered losses greater than $50,000 in Li-Cycle to contact him directly to discuss their options
New York, New York–(Newsfile Corp. – April 1, 2022) – Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Li-Cycle Holdings Corp. (“Li-Cycle” or the “Company”) (NYSE: LICY).
If you have suffered losses greater than $50,000 investing in Li-Cycle stocks or options and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 Where 212-983-9330 (ext. 1310). You can alsoClick here for more information: www.faruqilaw.com/LICY.
There is no cost or obligation for you.
Faruqi & Faruqi is a leading national minority and women-owned securities law firm with offices in New York, Pennsylvania, California and Georgia.
On March 24, 2022, Blue Orca released a brief report on Li-Cycle’s operations. Blue Orca said: “In our view, Li-Cycle recognizes revenue using an Enron mark-to-model accounting gimmick. Li-Cycle recognizes revenue months ahead of actual sales of its black mass recycled, based on its own tentative estimate of the future value of the product. This accounting treatment is clearly vulnerable to abuse, giving Li-Cycle discretion over its reported earnings. We suspect that in this setting, Li-Cycle Cycle marks up the value of its unsold product receivables and manages earnings through its revenue line.In the last quarter, we calculate that 45% of Li-Cycle’s revenue came from simple markup of unsold product receivables. products that had not been sold.We suspect such questionable accounting could explain why Li-Cycle’s CFO and CFO auditor resigned in January 2022, just months after s the IPO of the company.” The report further adds, “Even by SPAC standards, Li-Cycle is a governance nightmare. Its founder is a serial penny stock promoter recently sanctioned by Canadian authorities and its management team embezzled a half -million in shareholder money to enrich those around them with wasteful spending, including tens of thousands of dollars on leather goods purchased from the CEO’s family Li-Cycle’s cash burn is so serious and well above previous forecasts that analysts have already downgraded the stock and told the market to expect Li-Cycle to raise at least $1 billion through dilutive debt and equity offerings.
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