Hagens Berman urges Danimer Scientific, Inc. investors with significant losses to submit your losses.
Class Period: Oct. 5, 2020 – May 3, 2021
Lead Plaintiff Deadline: July 13, 2021
Contact An Attorney Now: DNMR@hbsslaw.com
Danimer Scientific, Inc. Securities Fraud Action:
The complaint alleges that Danimer made misrepresentations and omissions concerning its production of polyhydroxyalkanoate (“PHA”) – a biodegradeable alternative to petrochemical-based plastics, which the company sells under its proprietary Nodax brand for usage in water bottles, straws, and food containers.
The truth emerged over a series of disclosures, beginning on Mar. 20, 2021, when the Wall Street Journal questioned whether Nodax’s breaks down far more quickly than fossil-fuel plastics, finding “many claims about Nodax’s are exaggerated and misleading.” One plastics expert labeled Danimer’s claims about Nodax’s biodegradability as “not accurate” and as “greenwashing.”
Next, on Apr. 22, 2021 analyst Spruce Point Capital Management published a scathing report noting: red flags; various inconsistencies about Danimer’s historical and present claims about the size of its operations; Nodax’s makeup and degradability; and the company’s expected profitability.
Finally, on May 4, 2021 Spruce Point published a follow-up report after acquiring documents from Kentucky’s Department of Environmental Protection and accused Danimer of “wildly overstating” production figures, pricing, and financial projections. According to Spruce Point, Danimer materially misreported its monthly PHA production for the Kentucky facility by as much as 100% in some months and its average selling price for Nodax’s® was overstated by 30 – 40%.
Each of these revelations sent the price of Danimer shares crashing lower.
“We’re focused on investors’ losses and proving Danimer misled investors by greenwashing and misstating its true performance metrics,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Danimer investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Danimer should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email mailto:DNMR@hbsslaw.com.
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Reed Kathrein, 844-916-0895