Solazyme, Inc. investors may receive additional information about the case by clicking the link "Join this Class Action" above.
Solazyme is a bioproducts company that produces oils from renewable sources. It’s technology focuses on the use of algae as part of a fermentation process that transforms plant materials into oils for use in a range of products, including skincare, food goods, and industrial applications. The complaint alleges that certain Defendants made false and misleading statements and concealed material information relating to the construction progress, development, and expected production capacity of the Company’s renewable oils production facility located in Moema, Brazil (the Moema Facility). Specifically, Defendants caused Solazyme securities to trade at artificially inflated prices by improperly concealing ongoing construction delays due to insufficient access to electricity and steam utility services. These challenges prohibited the Moema Facility from scaling its capacity production as projected.
Additionally, the complaint alleges that Solazyme, certain of its officers and directors, and the underwriters of the Offerings violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. The complaint alleges that certain Defendants made false and misleading statements and failed to disclose material adverse information in offering documents filed with the U.S. Securities and Exchange Commission in connection with the issuance of (i) approximately $149.5 million in convertible notes on or about March 27, 2014, and (ii) 5.75 million shares of common stock on the same day at $11.00 per share for aggregate gross proceeds of approximately $63.25 million.
The truth regarding the construction delays at the Moema Facility, and resulting diminished production capacity, was revealed on November 5, 2014, when the Company disclosed that it would narrow [its] production focus to smaller volumes of higher value products due to continued issues generating consistent power and steam. In reaction to this disclosure, Solazymes stock price declined $4.35 per share, or 58.08 percent, to close at $3.14 per share following the next trading session on November 6, 2014. Similarly, the market price of Solazymes notes declined by $235.00 per note from the prior reported trade on November 4, 2014, or 30.32 percent, to close at $540.00 per note following the next session in which the notes traded on November 7, 2014.
If you are a member of the class described above, you may no later than August 24, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
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. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. 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.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706