Just a few days LOOP stock was targeted by Hindenburg short attack, there is another crash for Loop Industries (NASDAQ:LOOP). Loop announced after Friday closing bell, that they received a subpoena from the U.S. Securities and Exchange Commission (“SEC”) requesting certain information from the Company, including information regarding testing, testing results and details of results from their Gen I and Gen II technologies and certain of their partnerships and agreements.
The SEC informed LOOP that its investigation does not mean that the SEC has concluded that anyone has violated the law and that the investigation does not mean that the SEC has a negative opinion of the Company, but it sent share price almost 10% down in after hours trading session.
On October 13, 2020, the Company and certain of its officers were named as defendants in a purported class action lawsuit filed in the United States District Court for the Southern District of New York, captioned Olivier Tremblay, Individually and on Behalf of All Other Similarly Situated v. Loop Industries, Inc., Daniel Solomita, and Nelson Gentiletti, Case No. 7:20-cv-0838. The allegations in the complaint claim that the defendants violated Sections 10(b) and 20(a) and Rule 10b-5 of the Securities Exchange Act of 1934 by making materially false and/or misleading statements, as well as failing to disclose material adverse facts about the Company’s business, operations, and prospects, which caused the Company’s securities to trade at artificially inflated prices. Plaintiff seeks damages on behalf of a class of purchasers of Loop’s securities between September 24, 2018 and October 12, 2020.
On October 13, 2020, the Company, Loop Canada Inc. and certain of their officers and directors were named as defendants in a proposed securities class action filed in the Superior Court of Québec (District of Terrebonne, Province of Québec, Canada), in file no. 700-06-000012-205. The Application for authorization of a class action and for authorization to bring an action pursuant to section 225.4 of the Québec Securities Act was filed by an individual shareholder on behalf of himself and a class of buyers who purchased the Company securities during the “Class Period” (not defined). Plaintiff alleges that throughout the Class Period, the defendants made false and/or misleading statements and failed to disclose material adverse facts concerning the Company’s technology, business model, operations and prospects, thus causing the Company’s stock price to be artificially inflated and thereby causing plaintiff to suffer damages. Plaintiff seeks damages stemming from losses he claims to have suffered as a result of the foregoing.