NEW YORK--(BUSINESS WIRE)--Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, reminds investors of a class action lawsuit against Danimer Scientific, Inc. (“Danimer” or the “Company”) (NYSE: DNMR) and certain of its officers, alleging violations of federal securities laws. If you purchased Danimer securities between October 5, 2020 and May 4, 2021 (the “Class Period”), and have suffered a loss, you are encouraged to contact Joseph Pettigrew for additional information at (844) 818-6982 or email@example.com.
Danimer specializes in bioplastic replacements for traditional petrochemical-based plastics. Since 2020, the Company 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. The Company has touted Nodax as a 100% biodegradable, renewable, and sustainable plastic, unlike traditional plastics.
The lawsuit alleges, among other things, that the Company made materially false and/or misleading statements and/or failed to disclose that: (i) Danimer had deficient internal controls; (ii) as a result, the Company misrepresented, inter alia, its operations’ size and regulatory compliance; (iii) Defendants had overstated Nodax’s biodegradability, particularly in oceans and landfills; and (iv) as a result, the Company’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’s claims that Nodax breaks down far more quickly than fossil-fuel plastics. The article alleged that, according to several experts, “many claims about Nodax are exaggerated and misleading.”
On this news, Danimer’s stock price fell from $49.98 to close at $43.55 on March 22, 2021 – a drop of nearly 13%.
On April 22, 2021, Spruce Point Capital Management (“Spruce Point”) published a report on Danimer, noting, among other red flags, various inconsistencies with the Company’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 $2.01 per share, or 8%, to close at $22.99 per share on April 22, 2021.
Then, 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, a drop of over 6%, to close at $22.14 per share on May 4, 2021.
What You Can Do
If you purchased Danimer securities between October 5, 2020 and May 4, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joseph Pettigrew at (844) 818-6982 or firstname.lastname@example.org. The lead plaintiff deadline is July 13, 2021.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan 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.