LOS ANGELES, Aug 5, 2021 – (BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces that it has filed a class action lawsuit in the U.S. District Court for the Northern District of California, titled Shankar v. Zymergen Inc., et al. pursuant to and / or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s initial public offering in April 2021 (the “IPO” or the “Offering”) . Plaintiff is pursuing claims against defendants under the Securities Act of 1933 (the “Securities Act”).
Investors are hereby notified that they have 60 days from this notification to move the court as the lead plaintiff in this lawsuit.
If you have suffered a loss on your Zymergen investments or would like to inquire whether you would like to make claims under U.S. securities laws to recover your loss, you can find your contact information at https://www.glancylaw.com/ cases / zymergen-inc. to transfer /. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, or email firstname.lastname@example.org to learn more about your rights.
In April 2021, Zymergen completed its IPO and sold approximately 18.5 million shares of common stock at a price of $ 31 per share.
On August 3, 2021, after the market closed, Zymergen issued a business update stating that it “recently became aware of issues with its commercial product pipeline that will affect the company’s delivery schedule and sales projections.” 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”. The company also announced that its CEO is stepping down with immediate effect.
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As a result of this news, the company’s share price fell $ 26.58 per share, or 76%, to close at $ 8.25 per share on August 4, 2021, a decrease of nearly 73% from the IPO price.
The registration statement was materially false and misleading and did not contain any material adverse facts. Specifically, Defendants have failed to advise investors: (1) that key customers encountered technical issues, including product shrinkage and incompatibility with customers’ processes, during the Hyaline qualification process; (2) that while the qualification process was critical to Hyaline market adoption and revenue generation, Zymergen had no insight into the qualification process; (3) that the company has overestimated demand for its products as a result; (4) that the foregoing would cause the Company’s product delivery schedule to be delayed, which in turn would delay revenue generation; and (5) that, based on the foregoing, Defendants’ positive statements about the business, operations, and prospects of the Company were materially misleading and / or improperly based.
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If you purchased or otherwise acquired Zymergen common stock in accordance with the IPO, you may request the court to appoint you as the lead plaintiff no later than 60 days after such notice. You don’t need to do anything at this point to be a member of the class; You can hire a lawyer of your choice or do nothing and remain an absent member of the group. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email email@example.com, or visit our website at www.glancylaw.com. For inquiries by e-mail, please include your postal address, telephone number and the number of shares purchased.
This press release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210804006189/en/
Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067