DEADLINE ALERT: Bragar Eagel & Squire, PC reminds investors that a class action lawsuit has been filed against Danimer Scientific, Inc. and encourages investors to contact the firm
NEW YORK–(COMMERCIAL THREAD) – Bragar Eagel & Squire, PC, a nationally recognized law firm, reminds investors that a class action lawsuit has been filed in the United States District Court for the Eastern District of New York in name of the investors who purchased Danimer Scientific, Inc. (NYSE: DNMR) between October 5, 2020 and May 3, 2021 inclusive (the “Class Period”). Investors have until July 13, 2021 to apply to the court to be named lead plaintiffs in the lawsuit.
Click here to join the action.
On March 20, 2021, the the Wall Street newspaper 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 that Danimer markets, breaks down much faster than plastics made from fossil fuels. the the Wall Street newspaper The article alleges that, according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading”. While Danimer would claim his claims are factual, the article quotes at least one expert saying that making general claims about Nodax’s biodegradability “is not correct” and is “greenwashing”.
March 22, 2021, the first trading day following the publication of the the Wall Street newspaper Article, Danimer’s share price fell $ 6.43 per share, or about 13%, to close at $ 43.55 per share on March 22, 2021.
After the Class Period ended on April 22, 2021, Spruce Point Capital Management (“Spruce Point”) issued a report on Danimer, noting, among other red flags, various inconsistencies with Legacy’s historical and current claims. Danimer (and Danimer) regarding the size of its operations, the composition and degradability of Nodax, and the expected profitability of the Company.
Following the release of the Spruce Point report, Danimer’s stock price fell $ 2.01 per share, or 8.04%, to close at $ 22.99 per share on April 22, 2021.
Then, on May 4, 2021, Spruce Point released another report on Danimer alleging that the company had “grossly overestimated” production numbers, prices, and financial projections based on documents that Spruce Point had acquired from the Department of Commonwealth of Kentucky Environmental Protection (“KDEP”) under the Freedom of Information Act (“FOIA”), all of which cast serious doubts on the integrity of the Company’s internal controls.
Following the release of this second Spruce Point report, Danimer’s share price fell $ 1.49 per share, or 6.31%, to close at $ 22.14 per share on April 22, 2021. .
Throughout the Class Period, the Defendants have made materially false and misleading representations regarding the affairs, operations and compliance policies of the Company. Specifically, the defendants made false and / or misleading statements and / or failed to disclose that: (i) Danimer had deficient internal controls; (ii) as a result, the Company had distorted, among other things, the size of its operations and regulatory compliance; (iii) the defendants overestimated the biodegradability of Nodax, particularly in oceans and landfills; and (iv) accordingly, the Company’s public statements were materially false and misleading at all material times.
If you have bought or acquired Danimer shares and suffered a loss, are a long-time shareholder, have any information, want to know more about these claims or have questions regarding this announcement or your rights or interests in respect of these claims. questions, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by email at [email protected], by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Past results do not guarantee similar results.