This case was last updated from PACER on 08/05/2021 at 05:39:45 (UTC).

Shankar v. Zymergen Inc. et al

Case Summary

On August 4, 2021, Hariram Shankar (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Pavithra Rajesh of Glancy Prongay & Murray LLP, filed a civil action against Zymergen, Inc. (“Zymergen” or the “Company”), Josh Hoffman (“Hoffman”), Enakshi Singh (“Singh”), Steven Chu (“Chu”), T. Flatley (“Flatley”), & others (the “Individual Defendants”), (collectively with “Zymergen”, the “Defendants”), seeking compensatory relief along with costs, expenses and counsel fees, for allegedly issuing a materially false and misleading registration statement in connection with the Company’s April 2021 initial public offering (“IPO” or the “Offering”). This case was filed in U.S. District Court in the Northern District of California. 

 

In its complaint, the Plaintiff alleged that, “On April 23, 2021, the Company filed its prospectus on Form 424B4 with the SEC, which forms part of the Registration Statement. In the IPO, the Company sold approximately 18,549,500 shares of common stock at a price of $31.00 per share. The Company received proceeds of approximately $530.1 million from the Offering, net of underwriting discounts and commissions. The proceeds from the IPO were purportedly to be used for working capital and other general corporate purposes, including the continued investment in commercializing its existing products, launching products in its pipeline, and furthering the development of its biofacturing platform and technology.”

 

The Plaintiff further alleged that, “The Registration Statement was materially false and misleading and omitted to state: (1) that, during the qualification process for Hyaline, key customers had encountered technical issues, including product shrinkage and incompatibility with customers’ processes; (2) that, though the qualification process was critical to achieving market acceptance for Hyaline and generating revenue, Zymergen lacked visibility into the qualification process; (3) that, as a result, the Company overestimated demand for its products; (4) that, as a result of the foregoing, the Company’s product delivery timeline was reasonably likely to be delayed, which in turn would delay revenue generation; and (5) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects, were materially misleading and/or lacked a reasonable basis.”

 

The Plaintiff lists out two claims for relief. The first claim is against all Defendants for the alleged violation of Section 11 of the Securities Act, and the second claim is against the Individual Defendants for the alleged violation of Section 15 of the Securities Act. The Plaintiff claimed that Zymergen is the registrant for the IPO. The Defendants named herein were allegedly responsible for the contents and dissemination of the Registration Statement. As issuer of the shares, Zymergen is allegedly strictly liable to the Plaintiff and the Class for the misstatements and omissions. The Individual Defendants’ positions made them privy to and provided them with actual knowledge of the material facts concealed from the Plaintiff and the Class.

 

In its prayer for relief, the Plaintiff requested the Court to determine that this action is a proper class action under Rule 23 of the Federal Rules of Civil Procedure and award compensatory damages in favor of Plaintiff and the other Class members against all Defendants, jointly and severally, for all damages sustained as a result of Defendants’ wrongdoing, in an amount to be proven at trial, including interest thereon. Further, the Plaintiff has requested the Court to award the Plaintiff and the Class their reasonable costs and expenses incurred in this action, including counsel fees and expert fees.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    3:21-CV-06028

  • Filing Date:

    08/04/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    California Northern District

 

Party Details

Plaintiff

Hariram Shankar

Defendants

Zymergen Inc.

Josh Hoffman

Enakshi Singh

Steven Chu

Jay T. Flatley

Christine M. Gorjanc

Travis Murdoch

Matthew A. Ocko

Sandra E. Peterson

Zach Serber

Rohit Sharma

J.P. Morgan Securities LLC

Goldman Sachs & Co. LLC

Cowen and Company, LLC

BofA Securities, Inc.

UBS Securities LLC

Lazard Freres & Co. LLC

Attorney/Law Firm Details

Plaintiff Attorney

Pavithra Rajesh

Attorney at Glancy Prongay & Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

 

Court Documents

#4

(#4) CERTIFICATE of Counsel re #1 Complaint,, by Pavithra Rajesh on behalf of Hariram Shankar (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

#3

(#3) Certificate of Interested Entities by Hariram Shankar re #1 Complaint,, (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

#2

(#2) Proposed Summons. (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

1 #1

Civil Cover Sheet

#1

(#1) COMPLAINT against BofA Securities, Inc., Steven Chu, Cowen and Company, LLC, Jay T. Flatley, Goldman Sachs & Co. LLC, Christine M. Gorjanc, Josh Hoffman, J.P. Morgan Securities LLC, Lazard Freres & Co. LLC, Travis Murdoch, Matthew A. Ocko, Sandra E. Peterson, Zach Serber, Rohit Sharma, Enakshi Singh, UBS Securities LLC, Zymergen Inc. ( Filing fee $ 402, receipt number 0971-16251699.). Filed byHariram Shankar. (Attachments: #1 Civil Cover Sheet)(Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

 

Docket Entries

  • 08/04/2021
  • View Court Documents
  • Docket(#4) CERTIFICATE of Counsel re #1 Complaint,, by Pavithra Rajesh on behalf of Hariram Shankar (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#3) Certificate of Interested Entities by Hariram Shankar re #1 Complaint,, (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#2) Proposed Summons. (Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

    Read MoreRead Less
  • 08/04/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against BofA Securities, Inc., Steven Chu, Cowen and Company, LLC, Jay T. Flatley, Goldman Sachs & Co. LLC, Christine M. Gorjanc, Josh Hoffman, J.P. Morgan Securities LLC, Lazard Freres & Co. LLC, Travis Murdoch, Matthew A. Ocko, Sandra E. Peterson, Zach Serber, Rohit Sharma, Enakshi Singh, UBS Securities LLC, Zymergen Inc. ( Filing fee $ 402, receipt number 0971-16251699.). Filed byHariram Shankar. (Attachments: #1 Civil Cover Sheet)(Rajesh, Pavithra) (Filed on 8/4/2021) (Entered: 08/04/2021)

    Read MoreRead Less
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