SAN FRANCISCO, CA / ACCESSWIRE / October 20, 2020 / Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases can be found at the links provided.
The complaint alleges that Loop made false and misleading statements about its purportedly "proven" technology that breaks down PET plastic to its base chemicals at a recovery rate of 100%. The complaint also alleges that Loop misrepresented its partnerships with key customers.
Specifically, the complaint alleges that 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.
Investors allegedly began to learn the truth on Oct. 13, 2020, when Hindenburg Research published a report concluding "Loop is smoke and mirrors with no viable technology." Hindenburg reported that: (i) Loop's technology is no more efficient or cost effective than traditional PET recycling methods and its previous claims of breaking PET down to its base chemicals at a recovery rate of 100% were "‘technically and industrially impossible;'" (ii) under pressure from CEO Daniel Solomita, Loop's scientists were tacitly encouraged to lie about the results of the Company's process internally; and (iii) the Indorama partnership has not even been finalized, and the Thyssenkrupp partnership is on indefinite hold.
Following Hindenburg's report, the price of Loop shares crashed on Oct. 13, 2020.
Most recently, on Oct. 16, 2020 Loop announced the SEC subpoenaed the Company seeking information regarding testing, testing results and details of results about its technologies, partnerships and agreements, sending the price of Loop shares crashing again.
"We're focused on investors' losses and proving Loop misrepresented its technological capabilities," said Reed Kathrein, the Hagens Berman partner leading the investigation.
he complaint alleges that Defendants misrepresented and concealed that: (1) the Company was using pure methane as feedstock for its announced yields for its methanotroph bioconversion ("MCB") platform instead of natural gas; (2) yields from natural gas as a feedstock were substantially lower than the announced pure methane yields; (3) due to the substantial price difference between pure methane and natural gas, pure methane was not a commercially viable feedstock; (4) the Company's 1Q 2018 financial statements were false; (5) the Company had material weaknesses in its internal controls over financial reporting; and (6) the Company was under investigation by the SEC since October 2018.
Investors allegedly began to learn the truth through a series of disclosures beginning on Aug. 9, 2018, when the company announced that its 1Q 2018 financial results could no longer be relied on. In its restated 1Q 2018 results, the company made significant changes to deferred revenue, collaboration and licensing revenues and accumulated deficit, as well as admitted to material weaknesses in its internal controls over financial reporting.
Then, on Mar. 2, 2020, the company disclosed it received a subpoena in Oct. 2018 from the SEC concerning Precigen's MCB-related disclosures.
Finally, on Sept. 25, 2020, the SEC issued a cease and desist order involving "inaccurate reports concerning the company's purported success converting relatively inexpensive natural gas into more expensive industrial chemicals using a proprietary [MCB] program."
"We're focused on investors' losses and proving that Precigen cooked its books and promoted fake technology," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Throughout the Class Period, Defendants allegedly misrepresented and concealed that: (1) while Tactile publicly touted a $4 plus billion or $5 plus billion market opportunity, in truth, the total addressable market for Tactile's medical devices was materially smaller; (2) to induce sales growth and share gains, Tactile engaged in illegal sales and marketing activities; and (3) Tactile's revenues were in part the product of unlawful conduct and thus unsustainable.
The truth began to emerge on Mar. 20, 2019, when an amended federal Qui Tam complaint filed against Tactile was unsealed, which contained detailed allegations of illegal sales practices on the part of Tactile, causing the Company to submit fraudulent claims to Medicare and the VA.
Then, on Feb. 21, 2020, the court issued an order in the Qui Tam Action, denying Tactile's motion to dismiss in its entirety.
Finally, on June 8, 2020, research firm OSS Research published a scathing report about the Company, accusing Tactile of using a "‘daisy-chaining' kickback scheme that has resulted in rampant overprescribing and rapid market share gains at the expense of patients, insurers and the public."
All told, these disclosures caused Tactile securities to decline precipitously, wiping out significant shareholder value.
"We're focused on investors' losses and proving Tactile deceived investors by engaging in illegal marketing schemes to induce sales growth," said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Loop Industries, Precigen, and/or Tactile should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email LOOP@hbsslaw.com, PGEN@hbsslaw.com and/or TCMD@hbsslaw.com.
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