DNMR CLASS ACTION NOTICE: The Law Offices of Frank R. Cruz Files Securities Fraud Lawsuit Against Danimer Scientific Inc.

THE ANGEL–(BUSINESS WIRE) – Frank R. Cruz’s law firm has announced that it has filed a class action lawsuit against Danimer Scientific, Inc., et al., Entitled Skistimas, in the US District Court for the Eastern District of New York. (Case No. 21-cv-02824) on behalf of any person or entity who, between October 28, 2020 and May 4, 2021, inclusive, of Danimer Scientific Inc. (“Danimer” or the “Company”) (NYSE: DNMR ) purchased or otherwise acquired (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have until July 13, 2021 to move the court to serve as the lead plaintiff in this lawsuit.

If you are a shareholder who has suffered a loss, click here to participate.

On Saturday, March 20, 2021, the Wall Street Journal published an article entitled “Plastic Straws That Biodegradable Fast in the Ocean? Not quite, say scientists, “including Danimer’s claims that Nodax, a plant-based plastic that Danimer markets, degrades much faster than fossil-fueled plastics. The article claims that, according to several biodegradable plastics experts, “many claims about Nodax are exaggerated and misleading”. According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer’s marketing was “sensational” and that the Nodax biodegradability claim was “incorrect” and “green washing” be. ”

In that news, the company’s share price fell $ 6.43 per share, or around 13%, to close at $ 43.55 per share on March 22, 2021.

On April 22, 2021, Spruce Point Capital Management (“Spruce Point”) released a research report entitled “When the tide goes out, what washes up on land?” In addition to concerns about the biodegradability claims of Danimer products, the report identified “several conflicting sources for Danimer’s facility size and production capacity” and “inconsistencies between reported numbers and city submissions for the capital cost of its Kentucky facilities”. The report also cast doubt on the strength of the company’s alleged partnerships with Pepsi and Nestlé, as Pepsi recently sold its stake in Danimer and “both top Pepsi executives and Nestlé with close ties to Danimer have recently resigned”.

In that news, the company’s share price fell $ 2.01, or 8%, to close at $ 22.99 per share on April 22, 2021 in an unusually high trading volume.

On May 4, 2021, Spruce Point published a follow-up report. Citing information obtained through a Freedom of Information Act (“FOIA”) request from the Kentucky Department of Environment, the report alleged that “Danimer’s production numbers, prices and rosy financial projections are grossly overstated” and that the Kentucky facility has received a notice of air quality violations. Additionally, Danimer’s average PHA sale price appears to be 30% – 42% below management’s claims.

In that news, the company’s stock price fell $ 4.48, or 20%, in three consecutive trading sessions, closing at $ 17.66 per share on May 6, 2021 in an unusually high trading volume.

The complaint filed alleges that, throughout the classroom, the defendants made materially false and / or misleading statements and did not disclose material adverse facts about the business, operations and prospects of the company. In particular, Defendants have failed to advise investors: (1) that biodegradable materials such as Nodax could take years to degrade; (2) As a result, the company’s marketing claims that Nodax products could biodegrade within months have been exaggerated and misleading. (3) that monthly biopolymer production and natural gas consumption at the Company’s facilities in Kentucky and Georgia were significantly overrated; (4) that Danimer of the Air Quality Department faced compliance violations for its Kentucky facility; and (5) that Defendants’ positive statements about the Company’s business, operations and prospects as a result of the foregoing were materially misleading and / or unfounded.

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If you purchased Danimer securities during the class period, you can move the court no later than July 13, 2021 to request the court to appoint you as the lead plaintiff. You don’t need to take any action at this point to be a member of the class. You can keep an attorney of your choice or take no action and remain an absent member of the class. If you have purchased Danimer securities, have information or would like to learn more about these claims, or if you have any questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, email [email protected] or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your postal address, telephone number and the number of shares purchased.

This press release may be viewed as a solicitor’s advertisement in some jurisdictions under applicable laws and ethical rules.

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