GlobeNewswire Inc | Oct 15, 2020 01:45PM EDT

October 15, 2020

NEW YORK, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (Scott+Scott), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Loop Industries, Inc. (Loop or the Company) (NASDAQ: LOOP) and certain of its officers and directors, alleging violations of federal securities laws. If you purchased Loop securities between September 24, 2018 and October 12, 2020, inclusive, and have suffered losses, you are encouraged to contact attorney Jonathan Zimmermanat (888) 398-9312 or jzimmerman@scott-scott.comfor additional information about your rights.

The lawsuit alleges that Loop and the other named defendants issued materially false and/or misleading information, and failed to disclose material adverse facts about the Companys business, operations, and prospects. Specifically, according to the complaint: (1) Loop scientists were encouraged to misrepresent the results of Loops purportedly proprietary process for recycling plastics; (2) Loop did not have the technology to break PET plastics down to its base chemicals at a recovery rate of 100%; and (3) as a result, the Company was unlikely to realize the purported benefits of Loops announced partnerships with Indorama and Thyssenkrupp.

On October 13, 2020, Hindenburg Research (Hindenburg) published a report describing Loops technology for recycling plastics as being smoke and mirrors. Having purportedly spoken with multiple former employees, company partners, experts, and competitors during its 6-month investigation, Hindenburg stated that Loops scientists had been tacitly encouraged to lie about the results of the [C]ompanys process, that Loops previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were technically and industrially impossible, and that Loops partnership with Thyssenkrupp was on an indefinite hold.

On this news, Loops stock price fell sharply from $11.61 per share on October 12, 2020 to close at $7.83 per share on October 13, 2020, representing a decline of 32.56%.

What You Can Do

If you purchased or otherwise own Loop stock, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312, or at jzimmerman@scott-scott.com, or visit the Loop page on our website at https://scott-scott.com/case/loop-industries-inc/. The lead plaintiff deadline is December 14, 2020.

About Scott+Scott Attorneys at Law LLP

Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.

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CONTACT

Jonathan ZimmermanScott+Scott Attorneys at Law LLP230 Park Ave, 17th Fl., New York, NY 10169(888) 398-9312 jzimmerman@scott-scott.com