Securities class action litigation has been filed on behalf of investors in the securities Danimer Scientific, Inc. (“Danimer” or the “Company”) (NYSE: DNMR). If you purchased or otherwise acquired Danimer securities between October 5, 2020 and May 3, 2021, inclusive (the “Class Period”), you may move the court for appointment as lead plaintiff by no later than July 13, 2021.
You may retain Lieff Cabraser Heimann & Bernstein, LLP, or other attorneys, as your counsel in the action. Recognized by the National Law Journal as one of the nation’s top plaintiffs’ law firms, Lieff Cabraser is committed to safeguarding the rights of investors and upholding the integrity of the market. We have significant experience and a successful track record of representing institutional and individual investors in securities and financial fraud litigation.
Danimer investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should use the form below or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Danimer Securities Class Litigation
Danimer, headquartered in Bainbridge, Georgia, is a manufacturer of plastics known as polyhydroxyalkanoates (“PHAs”) that are derived from living organisms instead of fossil fuels. Danimer’s principal product is Nodax, a plastic that Danimer claimed was 100% biodegradable, sustainable and renewable. On October 5, 2020, Danimer, then called Meredian Holdings Group, Inc. (doing business as Danimer Scientific, or “Legacy Danimer”), announced a business combination with Live Oak Acquisition Corp. (“Live Oak”), a publicly traded special purpose acquisition company. On December 29, 2020, Legacy Danimer completed the combination with Live Oak, and Live Oak changed its name to “Danimer Scientific, Inc.” The Company’s common stock began to trade on the New York Stock Exchange under the symbol “DNMR.”
The action alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Danimer had deficient internal controls; (2) as a result, the Company misrepresented, inter alia, its operations’ size and regulatory compliance; (3) defendants overstated the biodegradability of Nodax; and (4) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On March 20, 2021, The Wall Street Journal (“WSJ”) reported that, according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading.” The WSJ article noted that at least one expert commented that Danimer’s broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.” Following this news, Danimer’s stock price fell $6.43 per share, or 12.87%, from its closing price of $49.98 on March 19, 2021, to close at $43.55 per share on March 22, 2021.
On April 22, 2021, Spruce Point Capital Management (“Spruce Point”) issued a report on Danimer noting, among other red flags, various inconsistencies with Legacy Danimer’s, and Danimer’s, historical and present claims regarding their business and operations. The report found “multiple conflicting sources of Danimer’s facility sizes and production capacity” and “inconsistencies between reported figures and city filings for Kentucky facility capital costs.” That same day, Danimer’s stock price fell $2.01 per share, or 8.04%, from its closing price of $25.00 on April 21, 2021, to close at $22.99 per share on April 22, 2021.
On May 4, 2021, Spruce Point published a follow-up report on Danimer, alleging that the Company had “wildly overstated” production figures, pricing, and financial projections based on documents Spruce Point obtained through a Freedom of Information Act request. According to the report, the documents showed that Danimer’s internal controls related to its production figures were deficient. On this news, the Company’s stock price fell $4.48, or 20%, over three consecutive trading sessions to close at $17.66 per share on May 6, 2021, on unusually heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States and has assisted clients in recovering over $124 billion in verdicts and settlements. Benchmark Litigation named Lieff Cabraser its “2020 California Plaintiff Firm of the Year,” and in early 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Lieff Cabraser is committed to access to justice for all.