SAN DIEGO, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Shareholder rights law firm Johnson Fistel, LLP reminds investors that a class action lawsuit has been filed against Loop Industries, Inc. ("Loop or the "Company") (NASDAQ: LOOP) on behalf of all purchasers of common stock during the period between September 24, 2018 and October 12, 2020, inclusive (the "Class Period").

If you wish to serve as a lead plaintiff, you must move the Court no later than December 14, 2020. If you want to discuss this action or have any questions concerning this notice, please contact lead analyst Jim Baker (jimb@johnsonfistel.com) at 619-814-4471. If you email, please include your phone number. 

On October 13, 2020, Hindenburg Research issued a report titled "Loop Industries: Former Employees and Plastics Experts Blow The Whistle On This Recycled Smoke And Mirrors Show." Hindenburg Research detailed a series of alarming red flags about Loop. Specifically, the report stated that Loop's stated technology breakthroughs are "fiction." Additionally, the report claimed, "A former Loop employee told us that Loop's scientists, under pressure from CEO Daniel Solomita, were tacitly encouraged to lie about the results of the Company's process internally. We have obtained internal documents and photographs to support their claims."

Following this news, the Company’s share price fell over 32% to close at $7.83 per share on October 13, 2020.

The complaint alleges that during the Class Period, Defendants made materially false and 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 Loop scientists were encouraged to misrepresent the results of Loop’s purportedly proprietary process; (2) that Loop did not have the technology to break PET down to its base chemicals at a recovery rate of 100%; (3) that, as a result, the Company was unlikely to realize the purported benefits of Loop’s announced partnerships with Indorama and Thyssenkrupp; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
jimb@johnsonfistel.com