This case was last updated from U.S. District Courts on 10/03/2021 at 07:37:58 (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

Judge Details

Presiding Judge

James Donato

 

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 Attorneys

Pavithra Rajesh

Attorney at Glancy Prongay & Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

Charles Henry Linehan

Attorney at Glancy Prongay and Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

Robert Vincent Prongay

Attorney at Glancy Prongay & Murray LLP

1925 Century Park East, Suite 2100

Los Angeles, CA 90067

Defendant Attorneys

Margaret West

Attorney at Freshfields Bruckhaus Deringer US LLP

2710 Sand Hill Road

Menlo Park, CA 94025

Boris Feldman

Attorney at Freshfields Bruckhaus Deringer US LLP

2710 Sand Hill Road

Menlo Park, CA 94025

Doru Gavril

Attorney at Freshfields Bruckhaus Deringer US LLP

2710 Sand Hill Road

Menlo Park, CA 94025

Drew Liming

Attorney at Freshfields Bruckhaus Deringer US LLP

2710 Sand Hill Road

Menlo Park, CA 94025

Charlene Sachi Shimada

Attorney at Morgan, Lewis & Bockius LLP

One Market Street, Spear Street Tower

San Francisco, CA 94105

Kevin M Papay

Attorney at Morgan, Lewis & Bockius LLP

One Market Street, Spear Street Tower

San Francisco, CA 94105

Lucy Han Wang

Attorney at Morgan, Lewis & Bockius LLP

One Market, Spear Street Tower

San Francisco, CA 94105

 

Court Documents

#22

21 #1

Notice of Eligibility for Video Recording

#21

#20

#19

#18

#17

#16

#15

8 #1

Exhibit A - Notice

#8

#7

#6

#4

#3

#2

1 #1

Civil Cover Sheet

#1

15 More Documents Available
View All Documents

 

Docket Entries

  • 09/01/2021
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  • Docket(#22) CASE MANAGEMENT SCHEDULING ORDER: Initial Case Management Conference set for 11/4/2021 10:00 AM in San Francisco, Courtroom 11, 19th Floor. Case Management Statement due by 10/28/2021. Signed by Judge James Donato on 9/1/2021. (lrcS, COURT STAFF) (Filed on 9/1/2021) (Entered: 09/01/2021)

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  • 08/31/2021
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  • Docket(#21) ORDER REASSIGNING CASE. Case reassigned using a proportionate, random, and blind system pursuant to General Order No. 44 to Judge James Donato for all further proceedings. Magistrate Judge Joseph C. Spero no longer assigned to case, Notice: The assigned judge participates in the Cameras in the Courtroom Pilot Project. See General Order No. 65 and http://cand.uscourts.gov/cameras.. Signed by Clerk on 8/31/21. (Attachments: #1 Notice of Eligibility for Video Recording)(asS, COURT STAFF) (Filed on 8/31/2021) (Entered: 08/31/2021)

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  • 08/31/2021
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  • Docket(#20) CONSENT/DECLINATION to Proceed Before a US Magistrate Judge by Hariram Shankar.. (Linehan, Charles) (Filed on 8/31/2021) (Entered: 08/31/2021)

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  • 08/30/2021
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  • Docket(#19) Certificate of Interested Entities by BofA Securities, Inc., Cowen and Company, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Lazard Freres & Co. LLC, UBS Securities LLC identifying Corporate Parent JPMorgan Chase & Co., Corporate Parent J.P. Morgan Broker-Dealer Holdings Inc. for J.P. Morgan Securities LLC; Corporate Parent NB Holdings Corporation, Corporate Parent Bank of America Corporation for BofA Securities, Inc.; Corporate Parent Lazard Group LLC, Corporate Parent Lazard Ltd for Lazard Freres & Co. LLC ; Corporate Parent Cowen Inc. for Cowen and Company, LLC; Corporate Parent UBS Americas Inc., Corporate Parent UBS Group AG, Corporate Parent UBS Americas Holding LLC for UBS Securities LLC; Corporate Parent The Goldman Sachs Group, Inc. for Goldman Sachs & Co. LLC. (Shimada, Charlene) (Filed on 8/30/2021) (Entered: 08/30/2021)

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  • 08/30/2021
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  • Docket(#18) NOTICE of Appearance by Kevin M Papay (Papay, Kevin) (Filed on 8/30/2021) (Entered: 08/30/2021)

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  • 08/30/2021
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  • Docket(#17) NOTICE of Appearance by Lucy Han Wang (Wang, Lucy) (Filed on 8/30/2021) (Entered: 08/30/2021)

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  • 08/30/2021
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  • Docket(#16) NOTICE of Appearance by Charlene Sachi Shimada (Shimada, Charlene) (Filed on 8/30/2021) (Entered: 08/30/2021)

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  • 08/30/2021
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  • Docket(#15) STIPULATION WITH PROPOSED ORDER RE SCHEDULING filed by Steven Chu, Jay T. Flatley, Christine M. Gorjanc, Josh Hoffman, Travis Murdoch, Matthew A. Ocko, Sandra E. Peterson, Zach Serber, Rohit Sharma, Enakshi Singh, Zymergen Inc.. (Feldman, Boris) (Filed on 8/30/2021) (Entered: 08/30/2021)

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  • 08/27/2021
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  • Docket(#14) Corporate Disclosure Statement by Zymergen Inc. identifying Other Affiliate AIG, Other Affiliate Axis Insurance Company, Other Affiliate Beazley Insurance Company, Inc., Other Affiliate Data Collective II, L.P., Other Affiliate DCVC II, Other Affiliate DCVC Opportunity Fund, L.P., Other Affiliate DCVC Opportunity Fund, Other Affiliate SVF Excalibur (Cayman) Limited, Other Affiliate SVF Endurance (Cayman) Limited, Other Affiliate SoftBank Vision Fund (AIV M1) L.P., Other Affiliate True Ventures IV, L.P., Other Affiliate True Ventures Select I, L.P., Other Affiliate True Ventures Select II, L.P., Other Affiliate True Ventures Select III, L.P., Other Affiliate True Ventures Select IV, L.P., Other Affiliate Chubb Group of Insurance Companies, Other Affiliate XL Specialty Insurance Company for Zymergen Inc.. and Certification of Interested Entities or Persons (Feldman, Boris) (Filed on 8/27/2021) (Entered: 08/27/2021)

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  • 08/27/2021
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  • Docket(#13) NOTICE of Appearance by Margaret West (West, Margaret) (Filed on 8/27/2021) (Entered: 08/27/2021)

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2 More Docket Entries
  • 08/27/2021
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  • Docket(#10) NOTICE of Appearance by Boris Feldman (Feldman, Boris) (Filed on 8/27/2021) (Entered: 08/27/2021)

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  • 08/25/2021
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  • Docket(#9) CLERK'S NOTICE Re: Consent or Declination: Plaintiff shall file a consent or declination to proceed before a magistrate judge. Note that any party is free to withhold consent to proceed before a magistrate judge without adverse substantive consequences. The forms are available at: http://cand.uscourts.gov/civilforms. (Party/parties were also notified via telephone or email.) Consent/Declination due by 9/8/2021. (klhS, COURT STAFF) (Filed on 8/25/2021) (Entered: 08/25/2021)

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  • 08/11/2021
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  • Docket(#8) NOTICE by Hariram Shankar of Publication of SEC Class Action Notice (Attachments: #1 Exhibit A - Notice)(Rajesh, Pavithra) (Filed on 8/11/2021) (Entered: 08/11/2021)

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  • 08/05/2021
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  • Docket(#7) Summons Issued as to 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. (hdjS, COURT STAFF) (Filed on 8/5/2021) (Entered: 08/05/2021)

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  • 08/05/2021
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  • Docket(#6) Initial Case Management Scheduling Order with ADR Deadlines: Case Management Statement due by 10/29/2021. Initial Case Management Conference set for 11/5/2021 02:00 PM in San Francisco, Courtroom F, 15th Floor. (hdjS, COURT STAFF) (Filed on 8/5/2021) (Entered: 08/05/2021)

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  • 08/05/2021
  • Docket(#5) Case assigned to Magistrate Judge Joseph C. Spero. Counsel for plaintiff or the removing party is responsible for serving the Complaint or Notice of Removal, Summons and the assigned judge's standing orders and all other new case documents upon the opposing parties. For information, visit E-Filing A New Civil Case at http://cand.uscourts.gov/ecf/caseopening.Standing orders can be downloaded from the court's web page at www.cand.uscourts.gov/judges. Upon receipt, the summons will be issued and returned electronically. Counsel is required to send chambers a copy of the initiating documents pursuant to L.R. 5-1(e)(7). A scheduling order will be sent by Notice of Electronic Filing (NEF) within two business days. Consent/Declination due by 8/19/2021. (asS, COURT STAFF) (Filed on 8/5/2021) (Entered: 08/05/2021)

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  • 08/04/2021
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  • 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)

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

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

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  • 08/04/2021
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  • 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)

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