Founded in 2015, PureCycle Technologies, Inc. (PCT) in Orlando, Fla., is an advanced recycling company that is revolutionizing the use of plastic waste to produce recycled polypropylene (PP). The company went public in March 2021 through a special purpose acquisition company (SPAC) transaction. The plastic recycling firm was criticized by a research firm, Hindenburg, which alleged that the company committed fraud by misleading investors about its technology and making wild revenue forecasts. In response to this allegation, a PCT spokesperson stated, “We believe PureCycle is well-positioned to continue executing its strategy to drive long-term growth and enhanced value for shareholders.”
Several legal firms have launched investigations into PCT for alleged securities fraud while offering to represent investors in potential litigation. For example, in December 2021, Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, encouraged investors to contact the firm because it is investigating potential claims against PCT following a class action complaint that was filed against PCT on May 11, 2021. The suit concerns whether PCT’s board has breached its fiduciary duties to the company. Other law firms have been investigating the company on similar grounds.
