San Francisco, California--(Newsfile Corp. - September 20, 2021) - Hagens Berman urges Zymergen Inc. (NASDAQ: ZY) investors with significant losses to submit your losses now.
Zymergen Inc. (ZY) Securities Class Action:
The case arises from Zymergen's misrepresentations in its Registration Statement for its Apr. 23, 2021, IPO concerning Hyaline, the Company's primary product that remains in the customer qualification stage.
Specifically, the Registration Statement emphasized Hyaline's total addressable market ("TAM"), but omitted that: (1) during the qualification process, key customers had encountered technical issues, including product shrinkage and incompatibility with customers' processes; (2) Zymergen lacked visibility into the qualification process; (3) the Company had overestimated demand for its products; and (4) the Company's product delivery timeline would be delayed, which in turn would prolong revenue generation.
These false statements and omissions allowed the Company to sell more than 18.5 million shares of common stock at a price of $31.00 per share, raising $530.1 million.
But on Aug. 3, 2021, Zymergen announced it became aware of "issues" with its commercial product pipeline impacting the Company's delivery timeline and revenue projections. Zymergen disclosed that it did not expect any product revenues in 2021 and that 2022 revenues would be immaterial. The Company blamed the commercial ramp delay on several key target customers being unable to use Hyaline in their manufacturing processes and on a smaller TAM than previously disclosed.
In addition, Zymergen's CEO (Josh Hoffman) abruptly left the Company.
This news sent the price of Zymergen shares crashing down $26.58 on Aug. 4, 2021, wiping out hundreds of millions of dollars in shareholder value.
"We're focused on investors' losses and proving Zymergen lied about Hyaline's business prospects," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Zymergen and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Zymergen should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ZY@hbsslaw.com.
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