Ginkgo Bioworks Holdings, Inc.

  • Active

Investigation
11/18/2021

Initial Lawsuit
11/18/2021

Lawsuit Progression
03/25/2022

Investigation

  • Continous Holding
    May 11, 2021 to October 5, 2021
  • Proposed Claim
    Securities Violation

Scorpio Capital issued a report alleging undisclosed third parties, company dependence on their revenue and shell game. Did Ginkgo Bioworks Holdings, Inc. mislead shareholders? The company disclosed an informal inquiry from regulators at the Department of Justice (DOJ).

This investors investigation is opened for investors to gather facts, findings and track related lawsuits. We invite investors and shareholders to contribute to investigations for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Short Attack

10/06/2021

Research Report (Short)

Scorpion Capital released a short thesis on Ginkgo, alleging that it is the “Frankenstein mash-up of the worst frauds of the last 20 years” and “one of the most brazen frauds of the last 20 years.”

The report results from an “intensive investigation into Ginkgo’s business model and practices, with a particular focus on the related-party entities that drive the bulk of its revenue” based on “21 research interviews, encompassing a broad sample of former employees and executives of Ginkgo, as well as individuals who are currently employed at its related-party “customers.”

The report further claims that Ginkgo’s business model “is based on a dubious shell game” because Ginkgo is “concealing the true extent of its dependence on related party revenue.“

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$10.59 $11.98 $-1.39 -11.6%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 11/18/2021

This is a federal securities class action on behalf of a class consisting of all persons and entities other than defendants who purchased or otherwise acquired the publicly traded securities of Ginkgo between May 11, 2021 and October 5, 2021, both dates inclusive.

  • Filing Date
    11/18/2021
  • Class Period
    05/11/2021 to 10/05/2021
  • Transgression
    Securities Violation
  • Filing Firms
    The Rosen Law Firm, P.A.
  • Case Title
    Stuart v. Ginkgo Bioworks Holdings, Inc. et al
  • Docket Number
    4:21-cv-08943
  • Court
    California Northern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors that:

(1) the company’s failure to derive real revenue from third-party customers left it almost completely dependent on related parties;
(2) as a result, most, if not all, of the company’s revenue came from related parties the company created, funded, or controlled through its ownership and board seats;
(3) the company was misclassifying and underreporting related party revenue in order to conceal the company’s near total-dependence on related parties;
(4) many of the company’s new R&D partners are undisclosed related parties and/or façades;
(5) as a result, the company’s valuation was significant less than defendants disclosed to investors; and
(6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.

Defendants

  • Company
    Ginkgo Bioworks Holdings, Inc.
  • Chief Executive Officer
    Harry E. Sloan
  • Chief Executive Officer
    Jason Kelly
  • Chief Financial Officer
    Mark Dmytruk

Lawsuit progression

  • Docket Number
    4:21-cv-08943
  • Court
    California Northern District Court

Lead Counsel

03/25/2022

The court issued an order appointing the lead plaintiff and lead counsel.

Second Amended Complaint

07/18/2022

    Operative complaint

Motion to Dismiss

07/21/2022

A motion to dismiss was filed with the court.

[stockdio-historical-chart symbol=”DNA” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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