Shareholders have initiated a class-action lawsuit against Li-Cycle Holdings following the suspension of construction on the company’s new facility in the Rochester-area Eastman Business Park. The legal action comes after an announcement on October 23, which, according to recent court filings, resulted in significant financial losses for the investors.
Li-Cycle had received a conditional commitment from the Department of Energy in February for a $375 million loan to support the construction of what was touted as North America’s premier lithium-ion battery resource recovery facility. The project was expected to generate 270 new jobs in the Rochester area, marking a substantial economic development initiative.
Despite halting construction, Li-Cycle has affirmed its dedication to the development of the Rochester hub. With shareholders now seeking legal remedies for their losses, the company has indicated that further updates on the project’s status will be provided in November.
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