Loop Industries, Inc.

LOOP
Tremblay v. Loop Industries, Inc., et al., No. 1:20-cv-08538 (S.D.N.Y.)

On October 13, 2020, analyst Hindenburg Research published a report concerning Loop Industries, Inc. (NASDAQ: LOOP), in which Hindenburg concluded that Loop “is smoke and mirrors with no viable technology.” Hindenburg concluded that “Loop’s claimed breakthroughs in PET plastic recycling are fiction.” This news stunned the market, causing Loop shares to plummet by approximately35%.

Loop refers to itself as a technology company whose “mission is to accelerate the world’s shift toward sustained PET plastic and polyester fiber.” According to Hindenburg, however, a former Loop employee told Hindenburg that Loop’s scientists, under pressure from the company’s CEO, were tacitly encouraged to lie about the results of the company’s process internally. Hindenburg wrote that it “obtained internal documents and photographs to support” those claims. Hindenburg further stated that according to a former employee, Loop’s previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were “technically and industrially impossible.” As part of its investigation, Hindenburg stated that it interviewed former employees, competitors, industry experts, and company partners.

Lead Plaintiff deadline
December 14, 2020
class period
September 24, 2018
to
October 12, 2020
Case Documents
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