NEW YORK, June 25, 2015 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Solazyme, Inc. (“Solazyme” or the “Company”) (Nasdaq:SZYM) and certain of its officers. The class action, filed in United States District Court, Northern District of California, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Solazyme securities pursuant and/or traceable to either of two registered public offerings during the Class Period, between February 27, 2014 and November 5, 2014 inclusive (the “Class Period”). On or about March 27, 2014, Solazyme executed a public notes offering (the “Notes Offering”) through which Solazyme sold approximately $149.5 million in convertible notes (including the full exercise of an underwriters’ option) paying five percent interest and scheduled to mature in 2019 (the“Notes”). That same day, Solazyme also conducted a separate public secondary offering of common stock (the “Stock Offering,” and together with the Notes Offering, the “Offerings”), pursuant to which the Company sold 5.75 million shares of stock (including the full exercise of an underwriters’ option) at $11.00 per share for aggregate gross proceeds of approximately $63.25 million. This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Act of 1933 (the “Securities Act”).
If you are a shareholder who purchased Solazyme securities during the Class Period, you have until August 24, 2015 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Solazyme is a bioproducts company that uses algae-based fermentation to produce renewable oils for a range of personal and industrial uses. Through proprietary technology, the Company purports to utilize microalgae in an industrial fermentation process to transform plantbased sugars into sustainable, high-performance products.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: Solazyme misstated and/or failed or disclose unfavorable news about its new renewable oils production facility in Moema, Brazil. Solazyme initially failed to report that the Moema Facility suffered construction delays stemming from the inadequate availability of electricity and steam utilities. As a result, the lawsuit claims that Solazyme was prevented from increasing output to its previously projected levels. When the true details entered the market, the complaint asserts that Solazyme’s share price declined and investors suffered damages.
On May 5, 2014, after the markets had closed, Solazyme reported operational results for the first quarter of 2014. During the related conference call, co-founder and Chief Executive Officer Jonathan S. Wolfson (“Wolfson”) 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.
July 30, 2014, after the markets had closed, Solazyme announced operational results for the second quarter of 2014. During the related conference call, Wolfson stated that the Moema Facility’s utility problems had yet to be resolved, merely claiming that the Company had “made great progress addressing the utility issues.”
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 both Moema and Clinton/Galva” and would be “prioritizing cash management and product margin over a rapid capacity ramp.”
In reaction to the disclosure that the Company’s Moema Facility was suffering from significant construction delays and would therefore abandon high volume production, the prices of Solazyme securities fell dramatically. For example, the Company’s stock price declined $4.35 per share, or 58.08 percent, to close at $3.14 per share following the next trading session on November 6, 2014. Similarly, the market price of Solazyme’s Notes declined by $235.00 per Note from the prior reported trade on November 4, 2014, or 30.32 percent, to close at $540.00 per Note following the next session in which the Notes traded on November 7, 2014.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.