According to the Complaint, PureCycle Technologies, Inc. claims it is commercializing a patented purification recycling technology, originally developed by the Procter & Gamble Company, for restoring waste polypropylene into resin with near virgin characteristics, called ultra-pure recycled resin. In early 2023, PureCycle claimed that it was finalizing construction and commissioning at the Ironton Facility, “which is expected to have capacity of approximately 107 million pounds/year when fully operational.”

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges Defendants failed to disclose to investors: (1) that the Ironton Facility experienced a full plant power outage on August 7, 2023; (2) that there was a risk of additional failures resulting from the August 7, 2023 power outage; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On February 20, 2024, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended consolidated Complaint on April 5. Defendants filed a Motion to Dismiss the amended consolidated Complaint on May 6. On December 20, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiff was given leave to amend the Complaint. Plaintiff did not amend the Complaint, and on January 11, 2025, the Court issued an Order dismissing the case with prejudice.