NOTICE: Investors with Substantial Losses Have Opportunity to Lead the Zymergen Inc. Class Action Lawsuit

SAN DIEGO, August 11, 2021 / PRNewswire / – Robbins Geller Rudman & Dowd LLP announces that Zymergen’s class action lawsuit has been filed against Zymergen Inc. (NASDAQ: ZY), certain of its officers and directors, and Zymergens’ underwriters April 2021 Initial public offering (“IPO”) violating the Securities Act of 1933 and seeking to represent buyers of Zymergen common stock pursuant to the registration statement and prospectus (collectively, the “Registration Statement”) relating to Zymergen’s initial public offering. The class action lawsuit against Zymergen (Shankar v. Zymergen Inc., No. 21-cv-06028) was filed in the Northern District of California on 4th August 2021 and is assigned to the Magistrate Judge Joseph C. Spero.

If you would like to stand as the lead plaintiff in the Zymergen class action, please provide your information by clicking here. You can also contact Attorney JC Sanchez of Robbins Geller by phone at 800 / 449-4900 or by email at [email protected]. Motions by the lead plaintiffs for the Zymergen class action must be filed with the court by no later than October 4, 2021.

CASE ALLEGATIONS: Zymergen’s class action lawsuit alleges that Zymergen’s registration statement was essentially false and misleading, and did not indicate that: (i) key customers encountered technical issues, including product shrinkage and incompatibility with customer processes, during the Hyaline qualification process; (ii) Although the qualification process was critical to Hyaline market adoption and revenue generation, Zymergen lacked insight into the qualification process; (iii) Zymergen has therefore overestimated the demand for its products; (iv) consequently Zymergen’s delivery time was likely to have been delayed, which in turn would delay revenue generation; and (v) thus Defendant’s positive statements about the business, operations and prospects of Zymergen were materially misleading and / or unfounded.

on August 3, 2021, Zymergen issued a business update saying it “has recently become aware of issues with its commercial product pipeline that will affect the company’s delivery schedule and sales forecast.” In particular, “several key target customers have encountered technical problems implementing Hyaline into their manufacturing processes,” and Zymergen also noted that the overall addressable market appears to be smaller than previously expected. As a result, Zymergen “no longer expects product sales in 2021 and expects product sales to be negligible in 2022”. Zymergen also announced the resignation of its CEO, effective immediately. As a result of this news, Zymergen’s share price fell about 76%, which harmed investors.

LEAD APPLICATION: The Private Securities Litigation Reform Act of 1995 allows any investor who has acquired and / or is traceable to Zymergen common stock pursuant to and / or attributable to Zymergen’s IPO registration as the lead plaintiff in the Zymergen class action to apply. A lead plaintiff is usually the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all the other group members in leading the Zymergen class action. The lead plaintiff can choose a law firm of their choice to bring the Zymergen class action lawsuit. An investor’s ability to participate in a possible future recovery of the Zymergen class action lawsuit does not depend on being the lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller attorneys have achieved many of the largest shareholder reclaims in history, including the largest stock class recovery reclaim of all time – $ 7.2 billion – in relation to Enron Corp. Sec. Lit. Robbins Geller was ranked # 1 in recovery in the 2020 ISS Securities Class Action Services Top 50 Report $ 1.6 billion for investors in the past year, more than double the amount collected from all other securities plaintiffs. Please visit https://www.rgrdlaw.com/firm.html for more information.

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SOURCE Robbins Geller Rudman & Dowd LLP

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