Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against Solazyme, Inc.
June 30, 2015
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers (the “Class”) of Solazyme, Inc. (“Solazyme” or the “Company”) (NASDAQ: SZYM) securities during the period of February 27, 2014 and November 5, 2014 (the “Class Period”), including those traceable to either of Solazyme’s two registered public offerings on March 27, 2014 (the “Offerings”), alleging violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933 against the Company and certain of its officers (the “Complaint”).
Solazyme is a San Francisco-based bio-products company that produces sustainable oils from microalgae. The Company uses an industrial fermentation process to transform plant-based sugars into triglyceride oils, which are used in a wide range of products
On March 25, 2014, Solazyme filed a Registration Statement with the SEC for the Offerings. On March 27, 2014, Solazyme filed a Prospectus in connection with the offering of $149.5 million in convertible notes paying 5% interest and scheduled to mature in 2019 (the “Notes”). On the same day, Solazyme filed a Prospectus for the offering of 5.75 million shares of stock at $11 per share for aggregate gross proceeds of approximately $63.25 million.
The Complaint alleges that during the Class Period, and in the Registration Statements and Prospectuses for the Offerings, defendants made materially false and misleading statements and/or failed to disclose adverse information about Solazyme’s construction progress, development and production capacity at its renewable oils production facility located in Moema, Brazil (the “Moema Facility”).
Specifically, the Complaint alleges defendants’ statements were false and misleading because they failed to disclose that the Moema Facility was experiencing construction delays due to insufficient access to electricity and steam utility services, and that these challenges would prohibit the Moema Facility from scaling its capacity production as projected. As a result of these false and misleading statements and/or omissions, Solazyme securities traded at artificially inflated prices during the Class Period.
On November 5, 2014, Solazyme acknowledged significant construction delays at the Moema Facility and revealed for the first time that it would “narrow [its] production focus to smaller volumes of higher value products at . . . Moema” and would be “prioritizing cash management and product margin over a rapid capacity ramp.”
On this news, the price of the Company’s stock declined $4.35 per share, over 58%, on November 6, 2014, and the market price of Solazyme’s Notes declined by $235.00 per Note, over 30%, on November 7, 2014, the next session in which the Notes traded.
Plaintiffs seek to recover damages on behalf of all Class members who purchased Solazyme notes or shares during the Class Period. If you purchased Solazyme securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 24, 2015.
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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Solazyme shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of California.