February 26, 2024

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Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed … | News

NEW YORK, April 27, 2022 (World NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally regarded shareholder rights legislation business, reminds traders that class steps have been commenced on behalf of stockholders of Li-Cycle Holdings Corp. (NYSE: LICY) and Bakkt Holdings, Inc. (NYSE: BKKT). Stockholders have until eventually the deadlines below to petition the court docket to serve as guide plaintiff. Added info about each situation can be identified at the backlink furnished.

Li-Cycle Holdings Corp. (NYSE: LICY)

Class Period: February 16, 2021 – March 23, 2022

Lead Plaintiff Deadline: June 20, 2022

On March 24, 2022, Blue Orca Capital released a report (the “Report”) characterizing the Corporation as “a close to deadly mix of inventory advertising, laughable governance, a damaged small business hemorrhaging money, and hugely questionable Enron-like accounting.” In accordance to the Report, “Li-Cycle recognizes revenues making use of an Enron-like mark-to-design accounting gimmick Li-Cycle recognizes revenues months prior to the precise sales of its recycled black mass, dependent on its possess provisional estimate of the long run benefit of the product. This accounting treatment method is plainly vulnerable to abuse, giving Li-Cycle discretion above its documented revenues. We suspect that less than this framework, Li-Cycle marks up the benefit of its receivables on unsold goods and operates the gains via its profits line.”

According to the lawsuit, defendants through the Class Period designed fake and/or deceptive statements and/or unsuccessful to disclose: (1) Li-Cycle’s most significant customer, Traxys North The usa LLC, is not in fact a purchaser, but basically a broker offering doing work cash monetary to the Corporation whilst Traxys attempts to promote Li-Cycle’s merchandise to finish customers (2) the Enterprise engaged in hugely questionable related party transactions (3) the Company’s mark-to-design accounting is vulnerable to abuse and gave a phony perception of progress (4) a considerable portion of the Company’s noted revenues ended up derived from only marking up receivables on goods that experienced not been sold (5) the Company’s gross margins have probable been destructive because inception (6) the Business will require an supplemental $1 billion of funding to aid its planned advancement (which is a figure higher than the Company elevated through the merger) and (7) as a consequence, defendants’ community statements ended up materially false and/or misleading at all relevant moments. When the real specifics entered the current market, the lawsuit promises that traders experienced damages.

On this news, Li-Cycle’s stock selling price fell $.47 cents for every share, or 5.60% to close at $7.93 for every share on March 24, 2022.

For extra facts on the Li-Cycle class action go to: https://bespc.com/instances/LICY

Bakkt Holdings, Inc. (NYSE: BKKT)

Class Interval: October 15, 2021 IPO or March 31, 2021 – November 19, 2021

Direct Plaintiff Deadline: June 20, 2022

Bakkt was formerly known as “VPC Effects Acquisition Holdings” and operated as a unique reason acquisition organization (SPAC), also identified as a blank-look at company, which is a progress stage company that has no particular business enterprise program or intent or has indicated its company program is to interact in a merger or acquisition with an unknown firm or companies, other entity, or human being.

On January 11, 2021, the Corporation and Legacy Bakkt announced entry into a definitive agreement for the Enterprise Blend that would end result in Legacy Bakkt turning into a publicly traded business with an organization benefit of somewhere around $2.1 billion.

On March 31, 2021, the Firm filed a registration assertion on Sort S-4 with the U.S Securities and Exchange Commission (“SEC”) in relationship with the Organization Blend, which, just after many amendments, was declared efficient by the SEC on September 17, 2021 (the “Registration Statement”). Also on September 17, 2021, the Business submitted a proxy statement and prospectus on Sort 424B3 with the SEC in connection with the Small business Mixture, which fashioned element of the Registration Statement (the “Proxy” and, collectively with the Registration Statement, the “Offering Documents”).

On or about October 15, 2021, the Corporation and Legacy Bakkt concluded the Small business Blend pursuant to the Providing Documents. Thereafter, the Enterprise improved its name to “Bakkt Holdings, Inc.” and commenced running a electronic asset system that enables individuals to get, offer, convert, and shell out electronic property.

The grievance alleges that the Providing Documents ended up negligently geared up and, as a result, contained untrue statements of material reality or omitted to point out other info required to make the statements built not misleading and have been not prepared in accordance with the principles and laws governing their preparation, and that throughout the Course Period of time Defendants made materially bogus and deceptive statements concerning the Company’s enterprise, operations, and compliance procedures. Especially, the Giving Paperwork and Defendants created untrue and/or deceptive statements and/or failed to disclose that: (i) the Enterprise experienced defective fiscal controls (ii) as a end result, there were being faults in the Company’s monetary statements related to the misclassification of particular shares issued prior to the Business enterprise Blend (iii) accordingly, the Business would have to have to restate particular of its fiscal statements (iv) the Firm downplayed the true scope and severity of these troubles (v) the Firm overstated its remediation of its faulty economical controls and (vi) as a end result, the Providing Files and Defendants’ general public statements all over the Course Time period ended up materially untrue and/or deceptive and unsuccessful to condition details necessary to be mentioned therein.

On May perhaps 17, 2021, Bakkt—then still operating as VIH—notified the SEC of its incapability to timely file its quarterly report for the quarter finished March 31, 2021. Particularly, the Company recommended that, as a final result of a statement issued by the SEC, “the Firm reevaluated the accounting cure of its public warrants and private placement warrants” and “is presently pinpointing the extent of the SEC Statement’s effects on its financial statements[.]”

On this news, the Company’s share price tag fell $.13 for each share, or 1.26%, to close at $10.18 for every share on Might 18, 2021.

Then, on October 13, 2021, the Business disclosed in an SEC filing that it had also earlier unsuccessful to appropriately account for the classification of its Class A ordinary shares and “adjust[ed] . . . the first carrying value of the Class A common shares subject to attainable redemption with the offset recorded to additional paid-in capital (to the extent available), accrued deficit and Course A standard shares.” Notably, the Business revised its stability sheet as of December 31, 2020, including, among other improvements, extra paid-in funds that was decreased from $9,860,338 to nil, an amassed deficit that ballooned from $4,861,190 to $29,250,419, and total shareholders’ equity of $5,000,009 that swung to a whole shareholders’ deficit of $29,249,901.

Pursuing these added disclosures, the Company’s share selling price fell $.47 for each share, or 4.73%, to close at $9.46 for each share on October 14, 2021.

At last, on November 22, 2021, Bakkt disclosed in one more SEC filing that the Company’s management “has re-evaluated . . . the accounting classification of the Course A common shares . . . of [VIH] . . . and has determined mistakes in the historical monetary statements of VIH . . . linked to the misclassification . . . of the Course A Everyday Shares prior to the [Business Combination].” Precisely, the Corporation identified that, as a final result of glitches in its condensed consolidated economical statements for the 12 months ended December 31, 2020, and the quarterly durations finished March 31, 2021, June 30, 2021 and September 30, 2021, Bakkt must “restate specified of VIH’s condensed consolidated fiscal statements from” these periods.

On this information, Bakkt’s inventory price fell $2.70 per share, or 13.69%, to shut at $17.02 per share on November 22, 2021.

As of the time the grievance was submitted, Bakkt’s Class A typical inventory was buying and selling in between $4 to $5 per share and proceeds to trade under its preliminary worth from the Organization Mixture, detrimental buyers.

For much more data on the Bakkt class motion go to: https://bespc.com/instances/BKKT

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally identified law company with places of work in New York, California, and South Carolina. The firm represents specific and institutional investors in commercial, securities, by-product, and other intricate litigation in point out and federal courts throughout the country. For far more info about the organization, be sure to check out www.bespc.com. Attorney marketing. Prior final results do not guarantee similar outcomes.

Call Facts:

Bragar Eagel & Squire, P.C. Brandon Walker, Esq. Alexandra B. Raymond, Esq. (212) 355-4648 [email protected]www.bespc.com