BOSTON, May 24, 2021 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that it has filed a class action lawsuit with an expanded class period on behalf of shareholders against Danimer Scientific, Inc. (NYSE: DNMR), formerly known as Live Oak Acquisition Corp. (NYSE: LOAK) and certain of its executives and directors for securities fraud. Investors who purchased Danimer and/or Live Oak shares between October 5, 2020 and May 3, 2021, and who lost money are strongly encouraged to contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or to visit our website for information on the case. The deadline to seek appointment as lead plaintiff is July 13, 2021.
On March 20, 2021, the Wall Street Journal published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean? Not Quite, Scientists Say.” According to the WSJ report, “Nodax breaks down far more quickly than fossil-fuel plastics . . . [but] many claims about Nodax are exaggerated and misleading, according to several experts on biodegradable plastics.” The article quoted an expert in the area who 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, Danimer’s stock price fell $6.43 per share, or approximately 13%, to close at $43.55 on March 22, 2021.
Then on April 22, 2021, analyst Spruce Point Capital Management published a report on Danimer, writing, “Another Go Around at Plastic Alternatives with Several Corporate Governance Red Flags: 65%-100% Downside Risk.” In this report, among other things, Spruce Point: (1) alleged that it found “several corporate governance red flags” involving past and current Danimer executives; (2) questioned the independence of Danimer’s scientific research; and (3) wrote that Danimer “has concealed, through numerous website changes and omission of past press releases, a pattern of conflicting and irreconcilable statements on capacity, facility size, and capex costs . . . .” On this news, the stock fell from $25.00 to $22.99 per share, or approximately 8%.
On May 4, 2021, Spruce Point issued an update to its earlier report, alleging that it found documents through a Freedom of Information Act request that “show smoking gun evidence of pricing inflation and slackness in capacity” at Danimer. Shares fell another $1.49 per share, or approximately 6.3%.
The lawsuit was filed in the U.S. District Court for the Middle District of Georgia. The case is captioned Wilkins v. Danimer Scientific, Inc., et al., No. 1:21-cv-00096-LAG (M.D. Ga.), and has been assigned to the Honorable Leslie Abrams Gardner, located at the C.B. King United States Courthouse, 201 West Broad Avenue, Albany, GA 31701. A related case was filed in the U.S. District Court for the Eastern District of New York before the Honorable Margo K. Brodie, Rosencrants v. Danimer Scientific, Inc., et al., No. 1:21-cv-02708-MKB-RLM. The new Wilkins action extends the class period to fall between October 5, 2020 and May 3, 2021, inclusive. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
If you purchased or acquired Danimer and/or Live Oak securities between October 5, 2020 and May 3, 2021 and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockleviton.com, or visit our website. The deadline to seek appointment as lead plaintiff is July 13, 2021.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets. The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm’s lawyers have recovered billions of dollars for its clients.
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CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockleviton.com
SOURCE: Block & Leviton LLP
www.blockleviton.com