Kewaunee Scientific Corporation (KEQU)
Whether directors and officers of Kewaunee Scientific Corporation (KEQU) breached their fiduciary duties to the company and its shareholders.
Investigation
08/04/2021
Initial Lawsuit
08/04/2021
Lawsuit Progression
12/20/2021
investigation regarding statements made by Zymergen in connection with its initial public offering and technical issues with its commercial product pipeline (Hyaline).
08/03/2021
Zymergen discloses “issues” with its commercial product pipeline, notably Hyaline, its bio-based polymer film product and discloses that it “no longer expects product revenue in 2021, and expects product revenue to be immaterial in 2022.”
“During the quarter, several key target customers encountered technical issues in implementing Hyaline into their manufacturing processes typical of new product and process development learnings. The Company has made significant progress towards addressing these challenges and believes there are no intrinsic technical issues with Hyaline. However, this issue has resulted in a delay in the Company’s commercial ramp. Zymergen is working to strengthen its commercial team to ensure the reliability and robustness of the sales pipeline qualification and forecast processes.”
Stock Impact
Close | Previous close | Price variation | Percentage variation |
---|---|---|---|
$8.25 | $34.83 | $-26.58 | -76.31% |
This is a class action 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 the Company’s April 2021 initial public offering.
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:
(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;
(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.
12/20/2021
The court issued an order appointing the lead plaintiff and lead counsel.
02/24/2022
This is a class action 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 the company’s April 2021 initial public offering (IPO).
Operative complaint
04/25/2022
A motion to dismiss was filed with the court.
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