| COMPANY |
Danimer Scientific, Inc. |
| COURT |
United States District Court for the Eastern District of New York |
| CASE NUMBER |
21-cv-02708 |
| JUDGE |
The Honorable Margo K. Brodie |
| CLASS PERIOD |
October 5, 2020 - May 4, 2021 |
| SECURITY TYPE |
All Securities |
Case Background:
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 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.
Current Status of Case:
On September 30, 2023, the Court granted Defendants’ Motion to Dismiss the Complaint and denied Lead Plaintiff’s request for leave to amend. On October 2, 2023, Judgment was entered closing the case. The Lead Plaintiff appealed that order to the Third Circuit Court of Appeals on October 27, 2023. This action is ongoing.
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