Biden Admin Approved Huge Loan To Green Company As It Was Allegedly Defrauding Investors. Now Its Stock Is Tanking

 

The Biden administration authorized a battery recycling company to receive a massive taxpayer-funded loan for a New York facility in February 2023, months after the company had allegedly started to defraud investors.

The Department of Energy’s (DOE) Loan Programs Office (LPO) and its director, Jigar Shah, pushed Li-Cycle, a company now in dire financial condition, to apply for a LPO loan to help build its Rochester, New York, facility as early as September 2022, according to The Wall Street Journal. The DOE announced its conditional commitment to loaning $375 million to the company in February 2023, just months after Shah’s meeting.

However, in a class-action lawsuit, investors are now accusing the firm of making false statements or withholding key information about the status of the Rochester facility starting as early as June 2022, months before the reported discussions about the loan or the announcement of conditional approval. The company announced on Oct. 23 that it had paused construction on the Rochester facility.

Li-Cycle now finds itself in poor financial shape; its stock, down more than 88% year-to-date...more