NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Zymergen Inc. (NASDAQ: NY) (“Zymergen”), certain of its officers and directors, and the underwriters of Zymergen’s April 2021 initial public offering (“IPO”), alleging violations of the Securities Act of 1933. If you purchased or otherwise own Zymergen securities, and have suffered a loss, realized or unrealized, you are encouraged to contact Jonathan Zimmerman for additional information at (888) 398-9312 or jzimmerman@scott-scott.com.
Zymergen creates products that purportedly combine the design and manufacturing efficiency of biological processes with technology’s ability to rapidly iterate and control diverse functions. Its first product is called Hyaline, an optical film designed for electronic companies to use for display touch sensors, which will purportedly enable customers to make foldable touchscreens and high density flexible printed circuits.
On April 23, 2021, Zymergen sold approximately 18,549,500 shares of common stock at a price of $31 per share, generating proceeds in excess of $530 million.
According to the complaint filed in the Northern District of California, the registration statement and prospectus used to effectuate the Company’s IPO was materially false and misleading and omitted to state: (1) that, during the qualification process for Hyaline, key customers had encountered technical issues; (2) that, though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (3) that, as a result, the Company overestimated demand for its products; and (4) that, as a result, the Company’s product-delivery timeline was reasonably likely to be delayed, which in turn would delay revenue generation, among other things.
On August 3, 2021, after the market closed, Zymergen issued a business update revealing that “several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes” and, as a result, Zymergen “no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022.”
On this news, the price of Zymergen’s stock fell $26.58 per share, or 76%, to close at $8.25 per share on August 4, 2021.
What You Can Do
If you purchased or otherwise own Zymergen securities and have suffered a loss, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Jonathan Zimmerman at (888) 398-9312 or jzimmerman@scott-scott.com. The lead plaintiff deadline is October 4, 2021.
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
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