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Case Number: CV-23-00710373-00CP
Practice Area: Canada
Court: Ontario Superior Court of Justice
Ticker Symbol: NYSE: "LICY"
CUSIP: 50202P204
ISIN: CA5020P2044
UPDATES
Status: Li-Cyle’s CCAA Proceeding terminated
January 30, 3026 – Li-Cycle’s CCAA Proceeding has been terminated. The Plaintiffs are now preparing the motion record in support of class certification of the causes of action and common issues.
Canadian investors are encouraged to contact Plaintiffs’ Class Counsel at Canadainfo@bergermontague.com to register their interest and to identify which documents they relied upon in deciding to purchase and hold Li-Cycle securities.
August 2, 2024 – The Court issued an Order resolving Li-Cycle’s motion to stay the proceeding on the grounds of forum non conveniens. Under the Order, the Plaintiff must amend the pleading within ten (10) days after Li-Cycle releases its Q2 2024 financial results and MD&A.
The proposed amended pleading will be brought on behalf of the Plaintiff and all other similarly situated Canadian beneficial owner investors, asserting causes of action for (i) common law misrepresentation, and (ii) breaches and related relief under the Ontario Business Corporations Act.
May 14, 2025 – Li-Cycle Holdings Corp. and related corporations commenced a proceeding under the Companies’ Creditors Arrangement Act (the “CCAA Proceeding”), resulting in a stay of litigation that includes the pending Canadian shareholder class action. Among other effects, the CCAA Proceeding now limits any recovery in the shareholder class action to available insurance.
November 9, 2024 – A timetable was set under s. 29.1(1)(c) of the Class Proceedings Act for a certification motion to take place following the delivery of material in Q1 of 2026.
Case Background
This class action alleges Li-Cycle misled investors concerning financing and progress on its Rochester Hub recycling facility. In February 2023, Li-Cycle announced a conditional $375 million loan commitment from the U.S. Department of Energy, without disclosing the conditions attached. Through October 2023, it continued reporting positively on the project while allegedly omitting mounting cost overruns and engineering and property issues.
On October 23, 2023, Li-Cycle halted construction pending a review, citing rising costs; shares fell 66%, from $2.27 to $1.23. On November 13, 2023, further negative details in its Q3 results sent shares down another 42%, from $1.56 to $0.89.
The proposed Class includes investors who acquired Li-Cycle shares during the Class Period and held them through at least one of these corrective disclosures.
