NEW YORK, June 16, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against Danimer Scientific, Inc. (“Danimer” or the “Company”) (NYSE: DNMR) and certain of its officers and directors. The class action, filed in United States District Court of the Eastern District of new York, and listed under 21-cv-02708, is in the name of a class made up of all persons and entities other than the Defendants who have purchased or otherwise acquired securities of Danimer between December 30, 2020 and March 19, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants in violation of federal securities laws and to pursue remedies under Sections 10 (b) and 20 (a) of the Securities Exchange Act (“Exchange Act”) and rule 10b-5 promulgated by virtue of it, against the Company and certain of its senior executives.
If you are a shareholder who purchased securities of Danimer during the Class Period, you have up to July 13, 2021 ask the court to appoint you as the principal plaintiff for the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
Danimer was previously known as “Live Oak Acquisition Corp.” (“Live Oak”), a publicly traded special purpose acquisition company. In december 2020, Live Oak has entered into a business combination with Meredian Holdings Group, Inc., doing business as Danimer Scientific (“Legacy Danimer”), a performance polymers company specializing in bioplastics replacements for traditional plastics at petrochemicals base (the “Business Combination”). As a result of the business combination, Live Oak changed its name to “Danimer Scientific, Inc.”, changed its business to Legacy Danimer and replaced its management with management of Legacy Danimer.
Since 2020, Legacy Danimer – and, following the business combination, Danimer – has commercially sold polyhydroxyalkanoates under its proprietary brand “Nodax” for use in a wide variety of plastic applications, including water bottles. , straws and food containers, among others. The company pitched Nodax as a 100% biodegradable, renewable and sustainable plastic, which is allegedly superior to traditional plastics due to its advanced biodegradability. The company attributes the advanced biodegradability of Nodax to naturally occurring microorganisms that eat the bioplastic.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operations and compliance policies. 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 made a false statement, among others, 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.
At March 20, 2021, the the Wall Street newspaper (“WSJ”) 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 breaks down much faster than fuel-based plastics fossils. The WSJ article claimed that, according to several biodegradable plastics experts, “many claims about Nodax are exaggerated and misleading.” While Danimer would claim his claims are factual, the article quotes at least one expert stating that making general claims about Nodax’s biodegradability “is not correct” and is “greenwashing”.
At March 22, 2021, on the first trading day following the publication of the WSJ article, Danimer’s stock price fell $ 6.43 per share, or 12.87%, to close at $ 43.55 per share on March 22, 2021.
After the end of the Recourse Period, the April 22, 2021, Spruce Point Capital Management (“Spruce Point”) published a report on Danimer, noting, among other red flags, various inconsistencies with historical and current claims by Legacy Danimer (and Danimer) regarding the size of its operations, the composition and degradability of Nodax, and the expected profitability of the Company.
Following the publication of the Spruce Point report, the Danimer share 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 figures, prices and financial projections based on documents that Spruce Point had acquired from the Commonwealth of Kentucky Department of Environmental Protection under the Freedom of Information Act, all of which cast serious doubts on the integrity of the company’s internal controls.
Following the publication 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.
The Pomerantz firm, with offices in new York, Chicago, Los Angeles, and Paris is recognized as one of the leading firms in the areas of corporate law, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz was a pioneer in the field of class actions in securities. Today, more than 80 years later, Pomerantz continues the tradition it established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and professional misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext 7980
SOURCE Pomerantz LLP