Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Courts for the Northern District of California on behalf of shareholders of Zymergen Inc. (NasdaqGS: ZY), if they purchased the Company’s shares issued in connection with its April 2021 initial public stock offering (the “IPO”).
Zymergen and certain of its executives are charged with failing to disclose material information in its IPO Registration Statement and Prospectus, violating federal securities laws.
On August 3, 2021, post-market, the Company disclosed that it “recently became aware of issues with its commercial product pipeline that will impact the Company’s delivery timeline and revenue projections,” specifically, that “several key target customers encountered technical issues in implementing Hyaline [its first product] into their manufacturing processes.” The Company also disclosed that its total addressable market appeared to be smaller than previously expected and it “no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022.”
On this news, shares of Zymergen fell $26.58 per share, or 76%, to close at $8.25 per share on August 4, 2021, representing a nearly 73% decline from the IPO price.
Shareholders have until October 4, 2021 to request that the court appoint them lead plaintiff.