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© 2026 Benzinga | All Rights Reserved
April 27, 2022 9:31 AM 4 min read

LICY DEADLINE: Robbins Geller Rudman & Dowd LLP Announces that Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

by Globe Newswire
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SAN DIEGO, April 27, 2022 (GLOBE NEWSWIRE) -- The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp. (NYSE:LICY, LICY.WS))) publicly traded securities between February 16, 2021 and March 23, 2022, both dates inclusive (the "Class Period") have until June 21, 2022 to seek appointment as lead plaintiff in Barnish v. Li-Cycle Holdings Corp. f/k/a Peridot Acquisition Corp., No. 22-cv-02222 (E.D.N.Y.). Commenced on April 19, 2022, the Li-Cycle class action lawsuit charges Li-Cycle as well as certain of its top executive officers with violations of the Securities Exchange Act of 1934.

If you suffered significant losses and wish to serve as lead plaintiff of the Li-Cycle class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at [email protected]. Lead plaintiff motions for the Li-Cycle class action lawsuit must be filed with the court no later than June 21, 2022.

CASE ALLEGATIONS: Li-Cycle is the leading lithium-ion battery recycler in North America. On August 10, 2021, Li-Cycle merged with Peridot Acquisition Corp., a special purpose acquisition company ("SPAC") also called a blank check company. Prior to the merger, Peridot traded on the NYSE under the ticker symbols PDAC, PDAC.U, and PDAC WS.

The Li-Cycle class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Li-Cycle's largest customer, Traxys North America LLC, is not actually a customer, but merely a broker providing working capital financial to Li-Cycle while Traxys tries to sell Li-Cycle's product to end customers; (ii) Li-Cycle engaged in highly questionable related party transactions; (iii) Li-Cycle's mark-to-model accounting is vulnerable to abuse and gave a false impression of growth; (iv) a significant portion of Li-Cycle's reported revenues were derived from simply marking up receivables on products that had not been sold; (v) Li-Cycle's gross margins have likely been negative since inception; (vi) Li-Cycle will require an additional $1 billion of funding to support its planned growth (which is a figure greater than Li-Cycle raised via the merger); and (vii) as a result, defendants' public statements were materially false and/or misleading at all relevant times.

Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.

Contact:
Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
J.C. Sanchez, 800-449-4900
[email protected]


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On March 24, 2022, Blue Orca Capital released a report on Li-Cycle describing Li-Cycle as "a near fatal combination of stock promotion, laughable governance, a broken business hemorrhaging cash, and highly questionable Enron-like accounting." Among other things, Blue Orca alleged that Li-Cycle's revenues are based on "an Enron-like mark-to-model accounting gimmick" and that "Li-Cycle diverted $529,902 in investor capital to the family . . . of its founders through a series of highly questionable related party payments." Blue Orca also alleged that Li-Cycle's "cash burn is so severe and far above previous guidance" which "will require [Li-Cycle] to raise at least $1 billion . . . in large part by massively diluting current shareholders." On this news, Li-Cycle's stock price fell by more than 5%, damaging investors.

Robbins Geller has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance. Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors. The rise in blank check financing poses unique risks to investors. Robbins Geller's SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Li-Cycle securities during the Class Period to seek appointment as lead plaintiff in the Li-Cycle class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Li-Cycle class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Li-Cycle class action lawsuit. An investor's ability to share in any potential future recovery of the Li-Cycle class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world's leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs' firm. With 200 lawyers in 9 offices, Robbins Geller's attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit http://www.rgrdlaw.com for more information.

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