Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Eastern District of New York on behalf of purchasers of Danimer Scientific, Inc. (NYSE:DNMR) securities between December 30, 2020 and March 19, 2021 (the “Class Period”). The case is captioned Rosencrants v. Danimer Scientific, Inc., No. 21-cv-02708, and is assigned to Judge Margo K. Brodie. The Danimer Scientific class action lawsuit charges Danimer Scientific and certain of its executives with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Danimer Scientific securities during the Class Period to seek appointment as lead plaintiff in the Danimer Scientific 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 Danimer Scientific class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Danimer Scientific class action lawsuit. An investor’s ability to share in any potential future recovery of the Danimer Scientific class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Danimer Scientific class action lawsuit or have questions concerning your rights regarding the Danimer Scientific class action lawsuit, please provide your information here or contact counsel, J.C. Sanchez of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the Danimer Scientific class action lawsuit must be filed with the court no later than July 13, 2021.
In December 2020, Live Oak Acquisition Corp., a publicly traded special purpose acquisition company (“SPAC”), consummated a business combination with Meredian Holdings Group, Inc., a performance polymer company specializing in bioplastic replacements for traditional petrochemical-based plastics. Following the business combination, Live Oak changed its name to Danimer Scientific, Inc., changed its business to legacy Danimer Scientific’s business, and replaced its management with legacy Danimer Scientific’s management. Since 2020, Danimer Scientific has sold polyhydroxyalkanoates (“PHAs”) commercially under its proprietary “Nodax” brand name for usage in a wide variety of plastic applications including water bottles, straws, and food containers, among others. Danimer Scientific has touted Nodax as a 100% biodegradable, renewable, and sustainable plastic, which is purportedly superior to traditional plastics because of its advanced biodegradability. Danimer Scientific attributes Nodax’s advanced biodegradability to microorganisms in nature that eat the bioplastic.
The Danimer Scientific class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Danimer Scientific had deficient internal controls; (ii) as a result, Danimer Scientific had misrepresented, among other things, its operations’ size and regulatory compliance; (iii) defendants had overstated Nodax’s biodegradability, particularly in oceans and landfills; and (iv) as a result, Danimer Scientific’s public statements were materially false and misleading at all relevant times.
On March 20, 2021, The Wall Street Journal (“WSJ”) published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean, Not Quite, Scientists Say” addressing, among other things, Danimer Scientific’s claims that Nodax breaks down far more quickly than fossil-fuel plastics. The WSJ article alleged that, according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading.” While Danimer Scientific reportedly asserts its claims are factual, the article cites at least one expert as stating that making broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.” On this news, Danimer Scientific’s stock price fell nearly 13%, damaging investors.
Following the end of the Class Period, on April 22, 2021, Spruce Point Capital Management (“Spruce Point”) published a report on Danimer Scientific, noting, among other red flags, various inconsistencies with Danimer’s historical and present claims regarding the size of its operations, Nodax’s makeup and degradability, and Danimer Scientific’s expected profitability. Then, on May 4, 2021, Spruce Point published another report on Danimer Scientific alleging that Danimer Scientific 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 under the Freedom of Information Act, all of which cast serious doubt on the integrity of Danimer Scientific’s internal controls.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. ISS Securities Class Action Services has ranked Robbins Geller as one of the top law firms in the world in both amount recovered and total number of class action settlements for shareholders every year since 2010. The SCAS 2020 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 plaintiffs’ firm. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210517005945/en/
Contacts
Robbins Geller Rudman & Dowd LLP
J.C. Sanchez, 800-449-4900
jsanchez@rgrdlaw.com
