LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming July 13, 2021 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Danimer Scientific Inc. (“Danimer” or the “Company”) (NYSE: DNMR) securities between December 30, 2020 and March 19, 2021, inclusive (the “Class Period”).
If you are a shareholder who suffered a loss, click here to participate.
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 alleges 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, thereby injuring investors.
Then, 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 $2.01 per share, or 8.04%, to close at $22.99 per share on April 22, 2021, thereby injuring investors further.
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, or 6.31%, to close at $22.14 per share on May 4, 2021, thereby injuring investors further.
The complaint filed alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Danimer had deficient internal controls; (2) as a result, the Company had misrepresented, inter alia, its operations’ size and regulatory compliance; (3) Defendants had overstated Nodax’s biodegradability, particularly in oceans and landfills; and (4) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Danimer securities during the Class Period, you may move the Court no later than July 13, 2021 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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