The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Zymergen Inc. (NASDAQ: ZY) who purchased common stock pursuant and/or traceable to the documents issued in connection with the Company’s April 2021 initial public offering. The action, which was filed in the United States District Court for the Northern District of California, alleges that the Company violated federal securities laws.
In particular, the Zymergen lawsuit alleges that (1) during the qualification process for the Company’s optical film product, Hyaline, key customers had encountered technical issues, including product shrinkage and incompatibility with customers’ processes; (2) though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (3) as a result, the Company overestimated demand for its products; (4) 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 (5) 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.
Shareholders have until October 4, 2021 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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