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PCT.US
id: 1215

PureCycle (PCT) $12M Investor Settlement

M.D. Florida
Court
6:21-cv-00809
Case number
16 Nov 2020
Class period Start
10 Nov 2021
Class period End

PureCycle (PCT) agreed to settle $12M with investors to end claims over the Procter & Gamble licensed technology issues and material challenges.


Case details:

Hindenburg Research released a report on May 6, 2021, criticizing PureCycle.

The report criticized PureCycle as a poor SPAC example, where executives benefit at the expense of retail investors by promoting unproven tech and unrealistic financial forecasts.
  • An expert denounced PureCycle's patent as vague and a repetition of existing idea.
  • Former employees also accused PureCycle's executives of making unreliable financial projections.
Following this news, $PCT dropped almost 40%.

Based on all these events, PureCycle was accused of the following points:
  • PureCycle's licensed technology was unproven and faced issues even at lab scale.
  • There were also challenges with raw material availability.

PureCycle has now decided to settle all allegations related to the Procter & Gamble licensed technology issues and material challenges by paying a $12M settlement to investors.

Case Status
Stipulative Settlement
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Plaintiffs
William C. Theodore
Attorneys
Pomerantz LLP (New York, NY)
Defendants
Michael Otworth, Tasmin Ettefagh, Michael E. Dee, David Brenner
Judge
Paul G. Byron
Administrator
Strategic Claims Services
Trades matching type
FIFO
+$12,000,000
Cash Settlement Amount

Frequently Asked Questions

Purecycle Technologies Holdings Corp

PureCycle Technologies, Inc. engages in the production of recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled polypropylene resin that has multi...

    Ticker
    PCT.US
    ISIN
    US74623V1035
    CIK
    1830033
    Sector
    Industrials
    Industry
    Pollution & Treatment Controls
    Country
    USA
    Address
    5950 Hazeltine National Drive, Orlando, FL, United States, 32822