RADNOR, PA / ACCESSWIRE / October 2, 2021 / Law firm Kessler Topaz Meltzer & Check, LLP reminds investors in Zymergen Inc. (NASDAQ: ZY) (“Zymergen”) that a securities fraud class action lawsuit has been filed on behalf of those who bought or acquired common shares of Zymergen in accordance with and / or traceable to the registration statement and prospectus (collectively, the âRegistration Statementâ) issued in connection with Zymergen’s initial public offering (âIPOâ) of April 2021.
Deadline reminder: investors who bought or acquired Zymergen common stockin accordance with and / or traceable to the IPO can, no later than October 4, 2021, seek to be appointed as principal applicant representative of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; by e-mail to[email protected]; WhereClick on https://www.ktmc.com/zymergen-class-action-lawsuit?utm_source=PR&utm_medium=Link&utm_campaign=zymergen
Zymergen uses a process it calls âbiofillingâ to create products that allegedly combine the efficiency of the design and manufacture of biological processes with the ability of technology to quickly iterate and control various functions. Its first product is called Hyaline, an optical film designed for electronics companies to use for display touch sensors, which will allegedly allow customers to manufacture foldable touch screens and flexible high-density circuit boards. Hyaline was launched in December 2020 but has not generated revenue as it is still in its process of qualifying with customers.
On April 23, 2021, Zymergen filed its prospectus on a Form 424B4, which is part of the registration statement. The registration statement touted Hyaline and predicted that Hyaline will begin generating revenue in the second half of 2021 and presented an alleged total market opportunity of $ 1.2 trillion.
The truth emerged on August 3, 2021. After the market closed, Zymergen released a trade update stating that it “has recently become aware of issues with its commercial product pipeline that will impact the market. [c]the company’s delivery schedule and revenue forecast. Specifically, “Several key target customers have encountered technical issues while implementing Hyaline in their manufacturing processes,” and Zymergen also found that its total addressable market appears to be smaller than expected. As a result, Zymergen âno longer expects product revenue in 2021 and expects product revenue to be intangible in 2022.â Zymergen also announced that its CEO, Josh Hoffman, is stepping down, effective immediately. .
As a result of this news, Zymergen’s share price fell $ 26.58 per share, or 76%, to close at $ 8.25 per share on August 4, 2021. At the time of filing the complaint , Zymergen shares were trading at $ 8.25 per share, almost 73% down from the IPO price of $ 31 per share.
The complaint alleges that the registration statement was materially false and misleading and failed to state that: (1) during the qualification process for Hyaline, major customers encountered technical issues, including product shrinkage and incompatibility with customer processes; (2) although the qualification process was essential in gaining market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (3) as a result, Zymergen overestimated the demand for its products; (4) due to the foregoing, the delivery schedule of Zymergen’s products was reasonably likely to be delayed, which in turn would delay revenue generation; and (5) as a result of the foregoing, the defendants’ positive statements about Zymergen’s business, operations and prospects were materially misleading and / or lacking reasonable basis.
Zymergen investors can, no later than October 4, 2021, seek to be appointed as the principal representative of class claimants through Kessler Topaz Meltzer & Check, LLP or another lawyer, or may choose to do nothing and remain an absent member of the class. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be named the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members, and that the Class Member will adequately represent the Class. You do not need to contact a lawyer to participate or share the recovery achieved in this case. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country relating to securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force in corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors in the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 route du Roi de Prussia
Radnor, Pennsylvania 19087
(844) 887-9500 (toll free)
THE SOURCE: Kessler Topaz Meltzer & Check, LLP
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