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Activist investment firm Blue Orca Capital recently published a report on Li-Cycle Holdings Corp. (LICY) (“Li-Cycle” or the “Company”) indicating that its financial standing isn’t as stable as the company’s press releases indicate.  Blue Orca’s report describes the company as one that uses predictions as reported revenues, and that “Li-Cycle recognizes revenues using an Enron-like mark-to-model accounting gimmick.”  The report goes on to say, “In our opinion, Li-Cycle is a fatal combination of SPAC trash, stock promotion, awful corporate governance, faulty accounting, and a broken business model which is not economically viable.”Activist investment firm Blue Orca Capital recently published a report on Li-Cycle Holdings Corp. (LICY) (“Li-Cycle” or the “Company”) indicating that its financial standing isn’t as stable as the company’s press releases indicate.

Blue Orca’s report describes the company as one that uses predictions as reported revenues, and that “Li-Cycle recognizes revenues using an Enron-like mark-to-model accounting gimmick.” Continue reading ›

Silver Law Group is investigating potential claims on behalf of investors in Clover Health Investments, Corp. Clover Health is a health insurance services company based in Tennessee. In January 2021, Clover Health went public, but shortly thereafter, Hindenberg Research published a report calling into question Clover’s business practices leading up to Clover’s Initial Public Offering (IPO). Clover Health’s share price dropped more than 12% following the news. Short Seller Hindenburg Published A Report Exposing Serious Alleged Misconduct On February 4, 2021, Hindenburg Research published a report titled “Clover Health: How the ‘King of SPACs’ Lured Retail Investors Into a Broker Business Facing an Active, Undisclosed DOC Investigation”. The report lodged serious allegations regarding Clover Health’s business practices, including: Clover has not disclosed that its business model and its software offering, called the Clover Assistant, are under active investigation by the Department of Justice (DOJ), which is investigating at least 12 issues ranging from kickbacks to marketing practices to undisclosed third-party deals, according to a Civil Investigative Demand (similar to a subpoena) we obtained. Much of Clover’s sales are driven by a major undisclosed related party deal and misleading marketing targeting the elderly.Silver Law Group is investigating potential claims on behalf of investors in Clover Health Investments, Corp. Clover Health is a health insurance services company based in Tennessee. In January 2021, Clover Health went public, but shortly thereafter, Hindenberg Research published a report calling into question Clover’s business practices leading up to Clover’s Initial Public Offering (IPO). Clover Health’s share price dropped more than 12% following the news. Continue reading ›

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