RYE BROOK, NY / ACCESSWIRE / August 5, 2021 / Klafter Lesser LLP, which has extensive experience in recovering investor losses through class action litigation, is investigating the revelations by ('Zymergen' or the 'Company') (NASDAQ:ZY) after the close of the markets on August 3, 2021 that resulted in a 76% decline in the price of ZY stock on August 4, 2021, for potential violations of the federal securities laws.
After the close of the markets on August 3, 2021, Zymergen shocked investors when it announced that it was experiencing issues with "its commercial product pipeline that will impact the Company's delivery timeline and revenue projections and that the Company no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022." Specifically, the Company made several substantial revelations. It announced that "several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes," its only current product, and the promise of which was extensively discussed in its April 2021 IPO Prospectus. It also stated that a market the Company expected to drive revenues, the total addressable market for foldable display applications -- also discussed in the IPO Prospectus -- had become "a smaller near-term market opportunity that is growing less rapidly than anticipated." And it had to announce that its CEO, Josh Hoffman, was immediately stepping down as CEO and as a member of the board, suggesting some wrongdoing on his part. These revelations were in stark contrast to Zymergen's first earnings report as a public company in May, when Zymergen executives reaffirmed product pipeline expectations, beginning with Hyaline and stated that Hyaline was set to begin driving revenues in 2H21, Zymergen's August 3, 2021, revelations caused its stock to decline 76 percent on August 4, 2021.
If you purchased Zymergen stock on its IPO or in the open market during the period April 21, 2021 through August 3, 2021, and have sustained losses of at least $50,000 due to Zymergen's August 3, 2021 announcement, please contact Klafter Lesser LLP at www.klafterlesser.com or at the contact information below to discuss our investigation and your rights.
About the Firm
Klafter Lesser LLP is based in New York but prosecutes cases throughout the USA. The Firm prides itself on litigating every case to obtain the largest recovery that the circumstances warrant. The founding partners have 74 years combined experience representing plaintiffs in securities and other class action litigation. Please visit our website for more information about the Firm.
Contact:
Amir Alimehri
Amir.alimehri@klafterlesser.com
2 International Drive, Suite 350
Rye Brook, NY 10573
(914) 934-9200 x 314
SOURCE: Klafter Lesser LLP
View source version on accesswire.com:
https://www.accesswire.com/658566/Klafter-Lesser-LLP-a-Highly-Accomplished-Class-Action-Law-Firm-Announces-That-It-Is-Investigating-the-Cause-of-the-Losses-Suffered-by-Zymergen-Investors
