The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Zymergen Inc. (“Zymergen” or the “Company”) (NASDAQ: ZY): common stock (a) pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s April 2021 initial public offering (“IPO” or the “Offering”); and/or b) between April 20, 2021 and August 4, 2021, inclusive (the “Class Period”). Investors have until October 4, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Zymergen creates products that purportedly combine the design and manufacturing efficiency of biological processes with technology’s ability to rapidly iterate and control diverse functions. Its first product is called Hyaline, an optical film designed for electronic companies to use for display touch sensors, which will purportedly enable customers to make foldable touchscreens and high density flexible printed circuits.
On April 23, 2021, Zymergen sold approximately 18,549,500 shares of common stock in its IPO at a price of $31 per share, generating proceeds in excess of $530 million.
On August 3, 2021, after the market closed, Zymergen issued a business update revealing that “several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes” and, as a result, Zymergen “no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022.” On this news, the price of Zymergen’s stock declined by $26.58 per share, or approximately 76.3%, from $34.83 per share to close at $8.25 per share on August 4, 2021.
The lawsuit alleges that the Registration Statement used to effectuate the Company’s IPO was materially false and misleading and omitted to state: (1) that, during the qualification process for Hyaline, key customers had encountered technical issues; (2) that, though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (3) that, as a result, the Company overestimated demand for its products; and (4) that, as a result, the Company’s product-delivery timeline was reasonably likely to be delayed, which in turn would delay revenue generation, among other things.
If you purchased or otherwise acquired Zymergen securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.