Lawsuit filed for Investors in shares of Zymergen Inc. (NASDAQ: ZY)

An investor, who purchased shares of Zymergen Inc. (NASDAQ: ZY), filed a lawsuit over alleged violations of Federal Securities Laws by Zymergen Inc. in connection with the Company’s April 2021 initial public offering (“IPO” or the “Offering”).

Investors who purchased shares of Zymergen Inc. (NASDAQ: ZY) have certain options and for certain investors are short and strict deadlines running. Deadline: October 04, 2021. NASDAQ: ZY investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

EmeryVille, CA based Zymergen Inc. designs, engineers, and optimizes microbes for industrial applications in United States, Asia, and Europe.

On or about April 22, 2021, Zymergen Inc. (NASDAQ: ZY) sold about 16.3 million shares of stock in its initial public stock offering (the "IPO") at $31 a share, raising nearly $505 million in new capital.

On August 3, 2021, Zymergen Inc. provided a business update regarding its commercial product pipeline and financial forecast. Zymergen claims it recently became aware of issues with its commercial product pipeline that will impact the Company’s delivery timeline and revenue projections. As a result, the Company no longer expects product revenue in 2021 and expects product revenue to be immaterial in 2022. Additionally, the Company announced that Josh Hoffman stepped down as CEO and a board member, effective immediately.

Shares of Zymergen Inc. (NASDAQ: ZY) declined to as low as $7.85 per share on August 4, 2021.

The plaintiff alleges on behalf of purchasers of Zymergen Inc. (NASDAQ: ZY) who purchased common Zymergen Inc. (NASDAQ: ZY) stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s April 2021 initial IPO” or the “Offering, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that the Defendants failed to disclose to investors that, during the qualification process for Hyaline, key customers had encountered technical issues, including product shrinkage and incompatibility with customers’ processes, that, though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process, that, as a result, the Company overestimated demand for its products, that, as a result of the foregoing, the Company’s product delivery timeline was reasonably likely to be delayed, which in turn would delay revenue generation, and that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Zymergen Inc. (NASDAQ: ZY) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.