GlobeNewswire Inc | Oct 13, 2020 10:16AM EDT

October 13, 2020

BOSTON, Oct. 13, 2020 (GLOBE NEWSWIRE) -- This morning, 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 Loops claimed breakthroughs in PET plastic recycling are fiction. This news stunned the market, causing Loop shares to plummet by approximately 35%.

Loop refers to itself as a technology company whose mission is to accelerate the worlds shift toward sustained PET plastic and polyester fiber. According to Hindenburg, however, a former Loop employee told Hindenburg that Loops scientists, under pressure from the companys CEO, were tacitly encouraged to lie about the results of the companys process internally. Hindenburg wrote that it obtained internal documents and photographs to support those claims. Hindenburg further stated that according to a former employee, Loops 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.

Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, is investigating whether Loop and certain of its executives may be liable for securities fraud. If you purchased or acquired shares of Loop and have questions about your legal rights or possess information relevant to these investigations, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or at https://www.blockleviton.com/cases/loop.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the countrys financial markets. The firm represents many of the nations largest institutional investors as well as individual investors in securities litigation throughout the United States. The firms lawyers have recovered billions of dollars for its clients.

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CONTACT:BLOCK & LEVITON LLP260 Franklin St., Suite 1860Boston, MA 02110Phone: (617) 398-5600Email: cases@blockleviton.comSOURCE: Block & Leviton LLPwww.blockleviton.com