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PureCycle Execs Misled on Recycling Tech Before SPAC, Suit Says

Jan. 27, 2022, 10:03 PM

The directors and executives of PureCycle Technologies Inc. misled investors about the company’s recycling technology and financial projections leading up its public offering through a blank check company acquisition, according to a new shareholder suit.

PureCycle’s board and senior executives, including CEO Michael Otworth, allowed the company to make misleading statements in proxy filings and other disclosures, shareholder Patrick Ayers said in a complaint filed Thursday in the U.S. District Court for the District of Delaware.

The complaint, which alleges the executives breached their fiduciary duties, is based in part on a May 6, 2021, report from short seller Hindenburg ...