Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit been filed in the United States District Court for Eastern District of New York on behalf of investors who purchased or acquired the securities of Danimer Scientific Inc. securities between December 30, 2020 and March 19, 2021, inclusive (the “Class Period”).
If you have incurred losses in your investment in shares of Danimer Scientific Inc., you may, no later than July 13, 2021, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights as an investor in the shares of Danimer Scientific Inc.
On March 20, 2021, The Wall Street Journal published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean, Not Quite, Scientists Say” addressing, among other things, Danimer’s claims that Nodax, a plant-based plastic that Danimer markets, breaks down far more quickly than fossil-fuel plastics.
The article alleged that according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading.” According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer’s marketing is “sensationalized” and that making broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.”
On this news, Danimer’s stock price fell $6.43 per share, or roughly 13%, to close at $43.55 per share on March 22, 2021.
Subsequently, on April 22, 2021, Spruce Point Capital Management (“Spruce Point”) published a report, noting among other things, various inconsistencies with Danimer’s historical and present claims regarding the size of its operations, Nodax’s makeup and degradability, and the Company’s expected profitability.
On this news, Danimer’s stock price fell an additional $2.01 per share, or 8.04%, to close at $22.99 per share on April 22, 2021.
On May 4, 2021, Spruce Point published another report on Danimer alleging that the Company had “wildly overstated” production figures, pricing, and financial projections based on documents Spruce Point had acquired from the Commonwealth of Kentucky’s Department of Environmental Protection (“KDEP”) under the Freedom of Information Act (“FOIA”), all of which cast serious doubt on the integrity of the Company’s internal controls.
On this news, Danimer’s stock price fell $1.49 per share, or 6.31%, to close at $22.14 per share on May 4, 2021.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at email@example.com.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
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