Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announces that it has commenced an investigation of potential claims against the board of directors of Zymergen Inc. (“Zymergen” or the “Company”) (NASDAQ: ZY) concerning whether the board of directors breached its fiduciary duties to Zymergen shareholders.
If you still hold Zymergen shares that were purchased pursuant to or around the time of the April 2021 IPO and wish to discuss this matter with us, or have any questions concerning your rights and interests, you can submit your contact information at www.glancylaw.com/cases/zymergen-inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
In April 2021, Zymergen completed its IPO, selling approximately 18.5 million shares of common stock at $31 per share.
On August 3, 2021, after the market closed, Zymergen issued a business update stating 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, Zymergen “no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022.” The Company also announced that its CEO was stepping down, 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, representing a nearly 73% decline from the IPO price.
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