Berkeley investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than February 7, 2022 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Berkeley Lights, Inc. (NASDAQ: BLI) common stock between July 17, 2020 and September 14, both dates inclusive (the “Class Period”).
Berkeley Lights is a biotechnology company that owns and operates a proprietary platform for analyzing and processing cell data for use in the development and commercialization of biotherapeutics and other cell-based products, focusing on the markets of antibody therapeutics, cell therapy and synthetic biology. The centerpiece of the Berkeley Lights platform is the company’s advanced automation system, the Beacon. The Beacon is a fully automated, high throughput system designed to allow detailed cell analysis at scale. The Beacon is used by Berkeley Lights’ customers for tasks such as antibody discovery and cell line development.
The Class Period commences on July 17, 2020, when Berkeley Lights filed a prospectus on a Form 424B4, which incorporated and formed part of the registration statement for the initial public offering. The registration statement highlighted the purported superiority of the Berkeley Lights platform compared to existing cell analyzing instruments, stating, for example, that the platform provides “the most advanced environment for rapid functional characterization of single cells at scale.” The registration statement also highlighted Berkeley Lights’ purported operational and financial growth. On November 19, 2020, Berkeley Lights filed a prospectus on a Form 424B4, which incorporated and formed part of the registration statement for a secondary offering.
The truth regarding the Beacon emerged on September 15, 2021, when research analyst firm Scorpion Capital issued an investigative report, titled “Fleecing Customers And IPO Bagholders With A $2 Million Black Box That’s A Clunker, While Insiders and Silicon Valley Bigwigs Race To Dump Stock. Just Another VC Pump at 27X Sales. Target Price: $0,” which criticized Berkeley Lights’ technology and questioned the durability of Berkeley Lights’ most important business relationships and its business growth plan. The report concluded that only a relatively small number of biotech companies could afford the relatively expensive machines produced by Berkeley Lights. In addition, the report found that negative customer experiences had further crimped Berkeley Lights’ growth potential. Following this news, the price of Berkeley Lights’ common stock fell nearly 30% over two trading days to close at $23.53 on September 16, 2021.
The complaint alleges that in the registration statements and throughout the Class Period, the defendants failed to disclose the following adverse facts pertaining to Berkeley Lights’ business, operations and financial condition: (1) Berkeley Lights’ flagship instrument, the Beacon, suffered from numerous design and manufacturing defects including breakdowns, high error rates, data integrity issues and other problems, limiting the ability of biotechnology companies and research institutions to consistently use the machines at scale; (2) Berkeley Lights had received numerous customer complaints regarding the durability and effectiveness of the company’s automation systems, including complaints related to the design and manufacturing; (3) the actual market for Berkeley Lights’ products and services was a fraction of the $23 billion represented to investors because of, inter alia, the relatively high cost of the company’s instruments and consumables and inability to provide the sustained performance necessary to justify these high costs; and (4) as a result of the above, the defendants’ statements during the Class Period regarding Berkeley Lights’ business, operations and financial results were materially false and misleading.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.