In Re Aqua Metals, Inc. Securities Litigation

I. BACKGROUND

1 A. Summary of Alleged False and Misleading Statements2 2 Aqua Metals is an early-stage company that was incorporated in 2014 and went public in 3 2015. SAC ¶¶ 45, 51. It developed a technology known as “AquaRefining” that recycles lead- 4 acid batteries (“LABs”). Id. ¶ 46. By 2015, at its test facility in California, the Company had 5 produced high purity lead from recycled LABs on a small-scale prototype of what would become 6 the basis of an AquaRefinery module, and had successfully replicated that performance on a 7 prototype of a full-scale electrolyzer, to produce 99.99% pure AquaRefined lead. Id. ¶ 123. 8 On May 19, 2016, the Company announced a strategic partnership with Interstate Batteries 9 (“IB”), pursuant to which IB invested about $10 million in the Company, and agreed to supply the 10 Company with more than one million LABs for the AquaRefineries. Id. ¶ 122; Dkt. No. 128-2, 11 Declaration of Michael Hogue in Support (“Hogue Decl.”) Ex. 3 (5/19/2016 Press Release). To 12 prepare for commercializing the technology, in August 2016, the Company announced it had 13 largely completed construction of its first AquaRefining facility at its Tahoe…