Lieff Cabraser announces that class action litigation has been filed on behalf of investors who purchased the common stock of Berkeley Lights, Inc. (“Berkeley Lights” or the “Company”) (Nasdaq: BLI) between July 17, 2020 and September 14, 2021, inclusive (the “Class Period”).
If you purchased Berkeley Lights common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than February 7, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Berkeley Lights investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here, or email firstname.lastname@example.org, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Background on the Berkeley Lights Securities Class Litigation
Berkeley Lights, headquartered in Emeryville, CA, is a biotechnology company. The chief product in its platform is the “Beacon,” a system for detailed analysis of cells at scale.
The action alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (1) the Beacon had multiple design and manufacturing issues including breakdowns, high error rates, and data integrity problems, effectively hindering the Company’s customers from consistently using machines at scale; (2) Berkeley Lights had received many customer complaints regarding the Company’s automation systems, including complaints related to their design and manufacturing; and (3) the true market for Berkeley Lights’ products and services was only a portion of the $23 billion market that the Company represented to investors, in view of the comparably large cost of the Berkeley Lights’ products and their incapacity to perform consistently enough to justify their high costs.
On September 15, 2021, research firm Scorpion Capital released a report on the Company entitled “Fleecing Customers And IPO Bagholders With A $2 Million Black Box That’s A Clunker, While Insiders and Silicon Valley Bigwigs Race To Dump Stock. Just Another VC Pump at 27X Sales. Target Price: $0.” The report detailed problematic issues with Berkeley Lights’ technology and called into question the strength of Berkeley Lights’ primary business relationships as well as the Company’s plan to grow its business. Scorpion Capital purportedly based its report on 24 research interviews with former employees of Berkeley Lights, and 17 scientists and users among 14 of the Company’s biggest customers. The report found a “trail of customers who allege they were ‘tricked,’ misled, or over-promised into buying a $2 million lemon,” and that the “reality is so far from BLI’s grandiose hype that we believe its product claims and practices may constitute outright fraud.” On this news, the price of Berkeley Lights common stock fell by $6.14, or 18.74%, from its closing price of $32.76 on September 14, 2021, to close at $26.62 on September 15, 2021, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America.”
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP