Ryan & Maniskas, LLP Announces Class Action Lawsuit Against Solazyme, Inc.
WAYNE, Pa., June 26, 2015 /PRNewswire/ -- Ryan & Maniskas, LLP that a class action lawsuit has been filed in United States District Court for the Northern District of California on behalf of purchasers of Solazyme, Inc. ("Solazyme" or the "Company") (NASDAQ: SZYM) securities during the period between February 27, 2014 and November 5, 2014 (the "Class Period"), including pursuant and/or traceable to either of Solazyme's two registered public offerings on March 27, 2014 (the "Offerings").
Solazyme shareholders may, no later than August 24, 2015, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Solazyme and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/szym.
The complaint charges Solazyme, certain of its officers and directors and the underwriters of the Offerings with violations of the Securities Exchange Act of 1934 and/or the Securities Act of 1933. Solazyme is a bioproducts company that uses algae-based fermentation to produce renewable oils for a range of personal and industrial uses.
On March 25, 2014, Solazyme filed with the SEC a Registration Statement for the Offerings, which was amended the next day to register an additional $12.75 million in aggregate maximum principal amount of stock and notes. 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 May 5, 2014, Solazyme reported operational results for the first quarter of 2014. During the related conference call, Solazyme's CEO stated that, rather than being "online" with "everything functioning as expected," as defendants had previously claimed, the Moema Facility was instead "experiencing intermittent power and steam availability," and consequently had failed to produce its first commercial product. Then, after the markets closed on November 5, 2014, Solazyme acknowledged significant and wide-ranging construction delays at the Moema Facility. On that day, the Company 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, or 58%, to close at $3.14 per share on November 6, 2014, and the market price of Solazyme's Notes declined by $235.00 per Note, or 30%, to close at $540.00 per Note on November 7, 2014, the next session in which the Notes traded.
Plaintiff seeks to recover damages on behalf of all purchasers of Solazyme securities during the Class Period, including pursuant and/or traceable to the Offerings (the "Class").
If you are a member of the class, you may, no later than August 24, 2015, request that the Court appoint you as lead plaintiff of the class. 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 Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.
For more information regarding this, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at [email protected] or visit: www.rmclasslaw.com/cases/szym. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.
Ryan & Maniskas, LLP is a national shareholder litigation firm. Ryan & Maniskas, LLP is devoted to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
CONTACT: Ryan & Maniskas, LLP
Richard A. Maniskas, Esquire
995 Old Eagle School Rd., Suite 311
Wayne, PA 19087
484-588-5516
877-316-3218
www.rmclasslaw.com/cases/szym
[email protected]
Logo - http://photos.prnewswire.com/prnh/20121112/MM11729LOGO
SOURCE Ryan & Maniskas, LLP
Share this article