NEW YORK, July 06, 2015 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of a class of investors who purchased securities on the open market of Solazyme, Inc. (“Solazyme” or the “Company”) (NASDAQ:SZYM) between February 27, 2014 and November 5, 2014, inclusive; or securities issued by Solazyme pursuant and/or traceable to either of two registered public offerings on or about March 27, 2014. Wolf Haldenstein encourages all shareholders who suffered losses greater than $100,000 to contact us immediately at classmember@whafh.com or (800) 575-0735.
The complaint alleges that the Company concealed material information relating to the construction progress, development and expected production capacity of the Company’s renewable oils production facility located in Moema, Brazil (the Moema Facility). Defendants caused Solazyme securities to trade at artificially inflated prices by improperly concealing ongoing construction delays due to insufficient access to electricity and steam utility services. These challenges prohibited the Moema Facility from scaling its capacity production as projected.
In addition, the complaint alleges that the Company and Underwriters made false and misleading statements and failed to disclose material adverse information in offering documents filed with the U.S. Securities and Exchange Commission in connection with the issuance of (i) approximately $149.5 million in convertible notes on or about March 27, 2014, and (ii) 5.75 million shares of common stock on the same day at $11.00 per share for aggregate gross proceeds of approximately $63.25 million.
The truth regarding the construction delays at the Moema Facility, and resulting diminished production capacity, was revealed on November 5, 2014, when the Company disclosed that it would narrow its production focus to smaller volumes of higher value products due to continued issues generating consistent power and steam. In reaction to this disclosure, Solazyme’s stock price declined $4.35 per share, or 58%, to close at $3.14 per share. Similarly, the market price of Solazyme’s notes declined by $235.00 per note from the prior reported trade on November 4, 2014, or 30.32%, to close at $540.00 per note on November 7, 2014.
If you purchased Solazyme securities on the open market during the Class Period or on the offerings noted above, you may, no later than August 24, 2015, request that the Court appoint you lead plaintiff of the proposed class. A lead plaintiff is a representative party that acts on behalf of all class members in directing the litigation. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein Adler Freeman & Herz LLP by telephone at (800) 575-0735, via e-mail at classmember@whafh.com, or visit our website at www.whafh.com. All e-mail correspondence should make reference to the “Solazyme Investigation.”