Sign In
PCT.US
id: 1215

PureCycle (PCT) $12M Investor Settlement

Late claims are being considered for compensation, subject to approval.
M.D. Florida
Court
6:21-cv-00809
Case number
11/16/2020
Class period Start
11/10/2021
Class period End
09/12/2024
Claim deadline

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
Accepting Late Claims
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.32
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
Settlement agreement date
2024-05-06
Court hearing date
10/08/2024
Exclusion deadline
09/12/2024
Objection deadline
09/17/2024
Hearing deadline
09/17/2024
Attorney fee
$4,460,000
Trades matching type
FIFO
+$12,000,000
Cash Settlement Amount

Frequently Asked Questions

When will you be able to apply for the payment?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11thestate?