RADNOR, Pa., June 10, 2021 (GLOBE NEWSWIRE) — The law firm of Kessler Topaz Meltzer & Check, LLP announces that securities fraud class action lawsuits have been filed in the United States District Court for the Eastern District of New York against Danimer Scientific, Inc. (NYSE: DNMR) (“Danimer”) f/k/a Live Oak Acquisition Corp. (NYSE: LOAK) (“Live Oak”) on behalf of those who purchased or acquired Danimer securities between October 5, 2020 and May 4, 2021, inclusive (the “Class Period”).
Investor Deadline Reminder: Investors who purchased or acquired Danimer securities during the Class Period may, no later than July 13, 2021, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation 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; via e-mail at [email protected]; or click https://www.ktmc.com/danimer-scientific-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=danimer
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 which 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.
Danimer investors may, no later than July 13, 2021, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a 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 affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)