ROCHESTER, N.Y. (WROC) — A class action lawsuit has been filed against Li-Cycle after the company halted construction of its Rochester facility.
The complaint in the lawsuit alleges that Li-Cycle made misleading and incorrect statements and did not share facts about its operations.
More specifically, the complaint claims that the company did not tell its investors about the rising costs of construction, the costs were higher than expected, and that the company would be forced to halt construction. On top of that, the complaint also says that the positive statements that Li-Cycle has made about its business and operations were misleading.
According to Glancy, Prongay, and Murray, the firm that filed the lawsuit, Li-Cycle’s shares fell around 45.81% since the company first announced that they would pause the project.
Li-Cycle was issued a conditional commitment for a loan totaling over $300 million towards its Rochester Hub. The plan is to process up to 35,000 tonnes of black mass a year. The company paused construction of the facility on October 23 in order to re-evaluate the scope and budget of the facility.
This decision, according to Li-Cycle, affected 20 employees, with most of them being furloughed and the rest being laid off. In addition, MasTec Industrial, a partner in the project, also laid off all 102 employees who worked at its McLaughlin Road location.
News 8 has reached out to Li-Cycle for comment on this lawsuit, and has not yet heard back.
Glancy Prongay and Murray is encouraging investors who suffered a loss on investments from Li-Cycle may submit their information through their website.