Before the market opened on October 23, 2023, Li-Cycle announced a halt on construction at its then largely complete Rochester Hub Project, citing recently escalating construction costs exceeding the Company’s previously disclosed guidance.
Shares of Li-Cycle Holdings Corp. stock dropped approximately 45% in intraday trading on October 23, 2023, on unusually heavy trading volume.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Li-Cycle’s Rochester Hub was experiencing escalating construction costs; (2) that these costs exceeded the expected aggregate cost of the project; (3) that, as a result, the Company would be forced to temporarily halt construction and reevaluate its construction strategy for the Rochester Hub; and (4) that, as a result of the foregoing, Defendants positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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