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SAN FRANCISCO, Jun 15, 2021--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Danimer Scientific Inc. ("Danimer" or the "Company") (NYSE: DNMR) between October 5, 2020 and May 3, 2021, inclusive (the "Class Period").
If you purchased or otherwise acquired Danimer securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 13, 2021. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Danimer investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Danimer Securities Class Litigation
Danimer, headquartered in Bainbridge, Georgia, is a manufacturer of plastics known as polyhydroxyalkanoates ("PHAs") that are derived from living organisms instead of fossil fuels. Danimer’s principal product is Nodax, a plastic that Danimer claimed was 100% biodegradable, sustainable and renewable. On October 5, 2020, Danimer, then called Meredian Holdings Group, Inc. (doing business as Danimer Scientific, or "Legacy Danimer"), announced a business combination with Live Oak Acquisition Corp. ("Live Oak"), a publicly traded special purpose acquisition company. On December 29, 2020, Legacy Danimer completed the combination with Live Oak, and Live Oak changed its name to "Danimer Scientific, Inc." The Company’s common stock began to trade on the New York Stock Exchange under the symbol "DNMR."
The action alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Danimer had deficient internal controls; (2) as a result, the Company misrepresented, inter alia, its operations’ size and regulatory compliance; (3) defendants overstated the biodegradability of Nodax; and (4) 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") reported that, according to several experts on biodegradable plastics, "many claims about Nodax are exaggerated and misleading." The WSJ article noted that at least one expert commented that Danimer’s broad claims about Nodax’s biodegradability "is not accurate" and is "greenwashing." Following this news, Danimer’s stock price fell $6.43 per share, or 12.87%, from its closing price of $49.98 on March 19, 2021, to close at $43.55 per share on March 22, 2021.
On April 22, 2021, Spruce Point Capital Management ("Spruce Point") issued a report on Danimer noting, among other red flags, various inconsistencies with Legacy Danimer’s, and Danimer’s, historical and present claims regarding their business and operations. The report found "multiple conflicting sources of Danimer’s facility sizes and production capacity" and "inconsistencies between reported figures and city filings for Kentucky facility capital costs." That same day, Danimer’s stock price fell $2.01 per share, or 8.04%, from its closing price of $25.00 on April 21, 2021, to close at $22.99 per share on April 22, 2021.
On May 4, 2021, Spruce Point published a follow-up report on Danimer, alleging that the Company had "wildly overstated" production figures, pricing, and financial projections based on documents Spruce Point obtained through a Freedom of Information Act request. According to the report, the documents showed that Danimer’s internal controls related to its production figures were deficient. On this news, the Company’s stock price fell $4.48, or 20%, over three consecutive trading sessions to close at $17.66 per share on May 6, 2021, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs’ Firms in America."
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210615005151/en/
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP