James (Josh) Wilson, Securities Litigation Partner, encourages investors with losses greater than $ 50,000 in Danimer Scientific Inc. to contact him directly to discuss their options

New York, New York – (Newsfile Corp. – June 7, 2021) – Faruqi & Faruqi, LLP, a leading national securities law firms, is investigating potential claims against Danimer Scientific Inc. (“Danimer “or the” Company “) (NYSE: DNMR) and reminds investors of the July 13, 2021 deadline to apply for the role of lead plaintiff in a federal securities class action lawsuit that has been filed against the Company.

If you suffered losses greater than $ 50,000 while investing in Danimer stocks or options between December 30, 2020 and May 4, 2021 and want to discuss your legal rights, call partner Faruqi & Faruqi Josh Wilson directly at 877-247-4292 or 212-983-9330 (ext. 1310). You can also click here for more information: www.faruqilaw.com/DNMR.

There is no cost or obligation for you.

Faruqi & Faruqi is a leading national minority and women-owned securities law firm, with offices in New York, Delaware, Pennsylvania, California and Georgia.

As detailed below, the lawsuit focuses on whether the Company and its officers violated federal securities laws by making false and / or misleading statements and / or failing to disclose that: (1 ) biodegradable materials such as Nodax could take years to decompose; (2) that, therefore, the Company’s marketing claims that Nodax products could biodegrade within months were exaggerated and misleading; (3) that the monthly production of biopolymers and the use of natural gas at the Company’s facilities in Kentucky and Georgia were significantly overestimated; (4) that Danmer faced compliance violations for its Kentucky facility from the Division of Air Quality; and (5) that as a result of the foregoing, the Defendants’ positive statements regarding the business, operations and prospects of the Company were materially misleading and / or lacked reasonable basis.

On Saturday March 20, 2021, The Wall Street Journal published an article titled “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 marketed by Danimer, breaks down much faster than plastics from fossil fuels. 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 Danimer presented as validating his material, said Danimer’s marketing is “sensational” and what to make general claims about Nodax’s biodegradability. ” is not correct “and is” greenwashing “. ”

Following this news, the company’s stock price fell $ 6.43 per share, or about 13%, to close at $ 43.55 per share on March 22, 2021.

Then, on April 22, 2021, Spruce Point Capital Management (“Spruce Point”) released a research report titled “When the tide goes out, what will wash ashore?” In addition to concerns about the biodegradability claims of Danimer’s products, the report found “multiple conflicting sources of the size and production capacity of Danimer’s facilities” and “inconsistencies between reported numbers and deposits from the Danimer. city ​​for Kentucky facility capital costs ”. The report also raised doubts about the strength of the company’s purported partnerships with Pepsi and Nestlé, as Pepsi recently sold its stake in Danimer and “key Pepsi and Nestlé executives with close relationships with Danimer recently resigned.” .

Following this news, the company’s stock price fell $ 2.01, or 8%, to close at $ 22.99 per share on April 22, 2021, on unusually high trading volume.

Then on May 4, 2021, Spruce Point released a follow-up report. Citing information obtained through a Freedom of Information Act (“FOIA”) request from the Kentucky Department of Environmental Protection, the report alleged that “Danimer’s production numbers, prices and financial projections are largely optimistic. overestimated ”and that its plant in Kentucky received a notice of non-compliance from the Air Quality Division. Additionally, “Danimer PHA’s average selling price appears to be 30% to 42% lower than management claims”.

Following this news, the Company’s share price fell $ 4.48, or 20%, over three consecutive trading days to close at $ 17.66 per share on May 6, 2021, on a unusually high volume of transactions.

The principal plaintiff appointed by the court is the investor with the greatest financial interest in the remedy sought by the group, who is adequate and typical of the members of the group who are directing and supervising the litigation on behalf of the putative group. Any putative class member can propose to the court to serve as lead plaintiff through any lawyer they choose, or they can choose to do nothing and remain an absent member of the class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.

Faruqi & Faruqi, LLP also encourages anyone with information regarding Danimer’s conduct to contact the company, including whistleblowers, former employees, shareholders and others.

Lawyer advertising. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Past results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/86800



Source link