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Loop Industries

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Loop Industries?

Attention Loop Industries investors: contact investor lawyers for a free evaluation of your potential claims for compensation today.

Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.

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The Loop Industries Class Action Investigation page is the resource for investors who bought Loop Industries shares in or before September 2018 and would like to evaluate compensation claims.

We can also do a Zoom call to discuss your matter.

Posted May 29, 2023

Loop Industries Investigation

Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating alleged securities violations, corporate misconduct, and misrepresentations, as well as questionable business practices involving Loop Industries Inc., and have identified potential areas of concern for Loop Industries investors.

What Loop Industries Investors May Do

LOOP investors interested in evaluating potential options to seek compensation and/or pursue claims related to their Loop Industries investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.

Get in Touch with an Experienced Team of Investor Attorneys

Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Loop Industries Inc.

They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.

Concerned LOOP stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.

Invested in Loop?

Potential Compensation Claims

Has Loop Industries Been Sued by US Regulators?

Loop Industries disclosed in a 8-K Report that the U.S. Securities and Exchange Commission (“SEC”) issued a subpoena requesting, among others, information surrounding the tests and test results from Loop’s Gen I and Gen II technologies. The company also announced that the SEC was also looking into Loop’s certain partnerships and agreements.

The announcement came a few days after a short-selling analyst firm published a report entitled “Loop Industries: Former Employees and Plastics Experts Blow the Whistle on This “Recycled” Smoke And Mirrors Show” that brought into question the company’s claims about its PET recycling technology. The report allegedly quoted former Loop employees calling company’s scientists “liars”, doubting company’s ability to make its “unparalleled purity” end product, and questioning whether Loop’s announced partnerships with giants such as Coca Cola, PepsiCo, L’Oreal or Danone have any chance of materializing.

In addition to the SEC’s inquiry, the Autorité des marchés financiers (AMF), the financial regulator in Québec, has issued a statement confirming it will examine the analyst firm’s report findings.

On September 30, 2022, the SEC announced the filing of a complaint alleging fraud involving selling Loop Industries stock, naming a company’s former member of board of directors (until June 28, 2018), Donald Danks, as defendant, in addition to three other individuals and its President and CEO Daniel Solomita as relief defendant. The case is currently pending.

Was a Loop Industries Director Criminally Indicted for Fraud?

On November 22, 2022, former Loop Industries Donald Danks was criminally indicted, together with three other defendants, for securities fraud, participating in an international Pump-and-Dump scheme, and money laundering, according to an announcement by the U.S. Attorney’s Office for the Southern District of California.

The criminal case is currently pending.

Was Loop Industries Sued for Misconduct?

Loop Industries Inc., Daniel Solomita, and Nelson Gentiletti, company’s former Chief Financial Officer and Chief Operative Officer have been the subject of two class action lawsuits, filed in the United States District Court for the Southern District of New York, that were consolidated in January 2021.

Loop Industries and its control persons were accused, among others, of violating securities laws by allegedly making materially false and/or misleading statements, and failing to disclose material adverse facts that allegedly caused Loop’s stock to trade at artificially inflated prices.

The complaint alleged that Loop’s scientists were encouraged to misrepresent the results of proprietary process, and that contrary to representations made to investors, Loop’s technology was not able to break PET down to its base chemicals and achieve the marketed recovery rate of 100%. The complaint further alleged misrepresentations in connection with the Indorama and Thyssenkrupp previously announced partnerships that unbeknownst to Loop investors were unlikely to happen.

The criminal case is currently pending.

Do Loop Industries Shareholders Have Claims for Compensation?

Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation and/or other redress on behalf of LOOP shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.

If you are a Loop Industries investor concerned about your investment and/or its value, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.

All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.

To reach attorney Alan Rosca or his colleagues, Loop Industries investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.

The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Loop Industries Class Action Investigation page is not affiliated with Loop Industries IncThere has not been an adjudication on the merits of the cases referenced in this blog post, as of the date of the posting.

Contact info:

Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law

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DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.