Danimer 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 above, you may no later than July 13, 2021 move the Court to serve as lead plaintiff of the class, if you so choose.
Live Oak was a publicly traded special purpose acquisition company. In December 2020, Live Oak consummated a business combination with Meredian Holdings Group, Inc. (“Meredian”), doing business as Danimer Scientific (“Legacy Danimer”), a performance polymer company specializing in bioplastic replacements for traditional petrochemical-based plastics (the “Business Combination”). Following the Business Combination, Live Oak changed its name to “Danimer Scientific, Inc.,” changed its business to Legacy Danimer’s business, and replaced its management with Legacy Danimer’s management.
The Class Period commences on October 5, 2020, when Meredian announced that it had entered into a definitive agreement for the Business Combination. On December 30, 2020, Danimer issued a post-market press release announcing the completion of the Business Combination. That press release represented that “[Danimer’s] signature polymer, Nodax™ PHA (polyhydroxyalkanoate), is a 100% biodegradable, renewable, and sustainable plastic” that “is the first PHA polymer to be certified as marine degradable, the highest standard of biodegradability, which verifies the material will fully degrade in ocean water without leaving behind harmful microplastics.” The press release also touted that Danimer was partnering with blue chip companies to “introduce more sustainable alternatives to straws, food and beverage containers, and flexible packaging, among others.” Throughout the Class Period Danimer touted Nodax’s environmental benefits, its viability as a fully biodegradable alternative to conventional plastic, the level of demand for Nodax, and the average selling price for Nodax.
The truth began to emerge on March 20, 2021, when 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 breaks down far more quickly than fossil-fuel plastics. Specifically, the article reported that “many claims about Nodax are exaggerated and misleading, according to several experts on biodegradable plastics,” and that, despite breaking down more quickly than traditional fossil-fuel plastics, “[b]iodegradable straws, bottles and bags can persist in the ocean for several years.” Following this news, the price of Danimer stock declined by $6.43, from $49.98 per share on March 19, 2021 to $43.55 per share on March 22, 2021, approximately 13%.
On April 22, 2021, research firm Spruce Point Capital Management (“Spruce Point”) issued a report demonstrating that Danimer’s annual report disclosures regarding the purchase price of the Kentucky Facility were inconsistent with city records. Then, on May 4, 2021, Spruce Point issued a follow-up report containing information about Danimer. The report revealed that Danimer’s production figures, average selling price, and financial projections had been “wildly overstated.” Following this news, Danimer’s stock price fell $4.48, or 20%, over three consecutive trading sessions to close at $17.66 per share on May 6, 2021.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) the defendants overstated and/or misstated the biodegradability and environmentally-friendly nature of its Nodax product; (2) the defendants misrepresented the size of Danimer’s facilities, production capacity and actual production amounts, and costs; (3) the defendants misrepresented Danimer’s growth, financial results, and financial projections; (4) Danimer had deficient internal controls; and (5) as a result, Danimer’s public statements were materially false and misleading at all relevant times.
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 or Adrienne Bell, Esq. (484) 270-1435; 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.