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SAN DIEGO, August 05, 2021--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of Zymergen Inc. (NASDAQ: ZY) common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the "Registration Statement") issued in connection with Zymergen’s April 2021 initial public offering ("IPO") have until October 3, 2021 to seek appointment as lead plaintiff in the Zymergen class action lawsuit. The Zymergen class action lawsuit charges Zymergen, certain of its officers and directors, and the underwriters of Zymergen’s IPO with violations of the Securities Act of 1933. The Zymergen class action lawsuit was filed in the Northern District of California on August 4, 2021 and captioned Shankar v. Zymergen Inc., No. 21-cv-06028.
If you wish to serve as lead plaintiff of the Zymergen class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Zymergen class action lawsuit must be filed with the court no later than October 3, 2021.
CASE ALLEGATIONS: The Zymergen class action lawsuit alleges that Zymergen’s Registration Statement was materially false and misleading and omitted to state that: (i) during the qualification process for Hyaline, key customers had encountered technical issues, including product shrinkage and incompatibility with customers’ processes; (ii) though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (iii) as a result, Zymergen overestimated demand for its products; (iv) consequently, Zymergen’s product delivery timeline was reasonably likely to be delayed, which in turn would delay revenue generation; and (v) thus, defendants’ positive statements about Zymergen’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On August 3, 2021, Zymergen issued a business update stating that it "recently became aware of issues with its commercial product pipeline that will impact the Company’s delivery timeline and revenue projections." Specifically, "several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes," and Zymergen also found that its total addressable market appears to be smaller than previously expected. As a result, Zymergen "no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022." Zymergen also announced that its CEO was stepping down, effective immediately. On this news, Zymergen’s stock price fell approximately 76%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Zymergen common stock pursuant and/or traceable to the Registration Statement issued in connection with Zymergen’s IPO to seek appointment as lead plaintiff in the Zymergen class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Zymergen class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Zymergen class action lawsuit. An investor’s ability to share in any potential future recovery of the Zymergen class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit https://www.rgrdlaw.com/firm.html for more information.
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