Investigation
LegalZoom.com, Inc. (LZ)
Whether directors and officers of LegalZoom.com, Inc. (LZ) breached their fiduciary duties to the company and its shareholders.
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Investigation
05/06/2021
Initial Lawsuit
05/11/2021
Lawsuit Progression
08/05/2021
This is a securities fraud class action on behalf of all purchasers of the publicly traded securities of PureCycle and/or ROCH between November 16, 2020 and May 5, 2021,inclusive, and all holders of ROCH securities entitled to participate in the March 16, 2021 shareholder vote on the merger with PureCycle.
According to the complaint, 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, defendants allegedly failed to disclose to investors that:
(a) deceived the investing public regarding PureCycle’s prospects and business;
(b) artificially inflated the price of PureCycle securities;
(c) permitted certain of PureCycle’s senior executives and directors to collect $7 million in cash bonuses just for closing the SPAC deal, and set them up to receive an additional $40 million in compensation before any revenues are generated by the Company;
(d) permitted the two investment banks who sponsored the ROCH SPAC, Roth Capital Partners, LLC (“Roth Capital”) and Craig Hallum Capital Group LLC (“Craig-Hallum”), to collectively receive approximately 2 million “founders” shares for a little more than a penny per share, worth approximately $48 million the day before the Report was issued;
(e) caused Plaintiff and other members of the Class to purchase PureCycle and/or ROCH securities at artificially inflated prices.
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