Berman Tabacco Announces Upcoming Lead Plaintiff Deadline for Investors with Significant Losses in Zymergen Inc. (ZY)

Boston, Massachusetts--(Newsfile Corp. - September 14, 2021) - Berman Tabacco, a national law firm representing investors, is investigating potential securities law violations against Zymergen Inc. ("Zymergen" or the "Company") (NASDAQ: ZY), a "biofacturing" company with headquarters in Emeryville, California.

If you purchased Zymergen common stock and have sustained losses in excess of $50,000 and are interested in learning more about serving as Lead Plaintiff, please provide your information here: Shareholder Contact | Berman Tabacco.

About the Securities Class Action Filed

On August 4, 2021, a securities class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of persons and entities that purchased or otherwise acquired Zymergen common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with its April 2021 initial public offering ("IPO"). In the IPO, the Company sold approximately 18.5 million common shares at $31 per share. The class action alleges claims under the Securities Act of 1933.

On August 3, 2021, after the market close, the Company issued a press release announcing that it "recently became aware of issues with its commercial product pipeline that will impact the Company's delivery timeline and revenue projections." Specifically, "several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes," and Zymergen also found that its total addressable market appears to be smaller than previously expected. As a result, the Company stated that it "no longer expects product revenue in 2021." The press release also announced that the Company's Chief Executive Officer ("CEO") would "step down as CEO and as a member of the Board, effective immediately."

On this news, the Company's stock price fell $26.58 per share, or 76%, to close at $8.25 per share on August 4, 2021.

The class action complaint alleges, among other things, that Defendants failed to disclose to investors: "(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."

How to Seek Appointment as Lead Plaintiff

If you wish to serve as Lead Plaintiff for the Class, you must file a motion to serve as Lead Plaintiff with the Court no later than October 4, 2021. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.

If you purchased Zymergen common stock and have sustained losses in excess of $50,000, and would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: Shareholder Contact | Berman Tabacco .

Berman Tabacco typically represents individuals and entities in class actions on a contingency fee basis, meaning we advance all attorneys' fees and expenses in the litigation. If the case is successful, the firm will ask the court to award the firm attorneys' fees and the reimbursement of expenses from any settlement fund. If we are not successful, you will not be responsible for the reimbursement of attorneys' fees or expenses.

About Berman Tabacco

Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.

This notice may constitute attorney advertising.

Contact:

Jay Eng, Esq.
(800) 516-9926
Email: law@bermantabacco.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96510