Danimer Scientific Inc. (DNMR)


DANIMER DEADLINE ALERT

Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $50,000 In Danimer Scientific Inc. To Contact Him Directly To Discuss Their Options

Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Danimer Scientific Inc. (“Danimer” or the “Company”) (NYSE: DNMR) and reminds investors of the July 13, 2021 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company. 

If you suffered losses exceeding $50,000 investing in Danimer stock or options between December 30, 2020 and May 4, 2021 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also fill out the form below for additional information. 

There is no cost or obligation to you. 

Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Delaware, Pennsylvania, California and Georgia.

As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) biodegradable materials such as Nodax could take years to break down; (2) that, as a result, the Company’s marketing claims that Nodax products could biodegrade within months were exaggerated and misleading; (3) that monthly biopolymer production and natural gas usage at the Company’s Kentucky and Georgia facilities were materially overstated; (4) that Danimer faced compliance violations for its Kentucky facility from the Division of Air Quality; and (5) 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.

On Saturday, March 20, 2021, The Wall Street Journal published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean? Not Quite, Scientists Say” addressing, among other things, Danimer’s claims that Nodax, a plant-based plastic that Danimer markets, breaks down far more quickly than fossil-fuel plastics. The article alleges that according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading.” According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer’s marketing is “sensationalized” and that making broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.” 

On this news, the Company’s stock price fell $6.43 per share, or roughly 13%, to close at $43.55 per share on March 22, 2021.

Then, on April 22, 2021, Spruce Point Capital Management (“Spruce Point”) published a research report entitled “When the Tide Goes Out, What Will Wash Ashore?” In addition to the concerns about Danimer’s product biodegradability claims, 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.” The report also raised doubts about the strength of the Company’s purported partnerships with Pepsi and Nestlé because Pepsi recently sold its equity stake in Danimer and “both the top Pepsi and Nestlé executives with close relationships to Danimer recently resigned.”  

On this news, the Company’s stock price fell $2.01, or 8%, to close at $22.99 per share on April 22, 2021, on unusually heavy trading volume.

Then May 4, 2021, Spruce Point published a follow-up report. Citing information obtained via a Freedom of Information Act (“FOIA”) request from the Kentucky Department of Environmental Protection, the report alleged that “Danimer’s production figures, its pricing, and rosy financial projections are wildly overstated” and that its Kentucky facility received a notice of compliance violations from the Division for Air Quality. Moreover, “Danimer’s PHA average selling price appears to be 30% - 42% below management’s claims.” 

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.
 

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Danimer Scientific Inc. (DNMR)

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Details

Filed on 03/25/2021

Ticker NYSE:DNMR

Lead Plaintiff Deadline 07/13/2021

Office

685 Third Avenue 26th Floor

10017 New York, New York

Phone (212) 983-9330

Fax (212) 983-9331

Counsel

Robert W. Killorin rkillorin@faruqilaw.com Phone (404) 847-0617 Fax (404) 506-9534

James M. Wilson, Jr. jwilson@faruqilaw.com Phone (212) 983-9330 Fax (212) 983-9331

Finding us

Our Offices


Our offices are nationwide. If you have any questions about a case or our firm, please contact us.

New York

685 Third Avenue 26th Floor
New York, New York 10017
(212) 983-9330
(877) 247-4292
(212) 983-9331

California

10866 Wilshire Boulevard Suite 1470
Los Angeles, California 90024
(424) 256-2884
(424) 256-2885

Delaware

3828 Kennett Pike Suite 201
Wilmington, Delaware 19807
(302) 482-3182
(302) 482-3612

Georgia

3975 Roswell Rd Suite A
Atlanta, Georgia 30342
(404) 847-0617
(404) 506-9534

Pennsylvania

1617 JFK Boulevard, Suite 1550
Philadelphia, Pennsylvania 19103
(215) 277-5770
(215) 277-5771

Faruqi & Faruqi office in New York, New York

Faruqi & Faruqi office in Los Angeles, California

Faruqi & Faruqi office in Wilmington, Delaware

Faruqi & Faruqi office in Atlanta, Georgia

Faruqi & Faruqi office in Philadelphia, Pennsylvania