A shareholder class action lawsuit has been filed against Danimer Scientific, Inc. (“Danimer” or the “Company”) (NYSE: DNMR) on behalf of investors who purchased shares of the Company’s stock between December 30, 2020 and March 19, 2021, inclusive (the “Class Period”).
As detailed in the complaint, Danimer was formerly known as “Live Oak Acquisition Corp.” (“Live Oak”), a publicly-traded special purpose acquisition company. In December 2020, Live Oak consummated a business combination with Meredian Holdings Group, Inc., doing business as Danimer Scientific (“Legacy Danimer”), a performance polymer company specializing in bioplastic replacements for traditional petrochemical-based plastics (the “Business Combination”). Following the Business Combination, Live Oak changed its name to “Danimer Scientific, Inc.,” changed its business to Legacy Danimer’s business, and replaced its management with Legacy Danimer’s management.
Since 2020, Legacy Danimer—and, following the Business Combination, Danimer—has sold polyhydroxyalkanoates commercially under its proprietary “Nodax” brand name for usage in a wide variety of plastic applications including water bottles, straws, and food containers, among others. The Company has touted Nodax as a 100% biodegradable, renewable, and sustainable plastic, which is purportedly superior to traditional plastics because of its advanced biodegradability. The Company attributes Nodax’s advanced biodegradability to microorganisms in nature that eat the bioplastic.
On March 20, 2021, the Wall Street Journal (“WSJ”) published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean, Not Quite, Scientists Say” addressing, among other things, Danimer’s claims that Nodax breaks down far more quickly than fossil-fuel plastics. The WSJ article alleged that, according to several experts on biodegradable plastics, “many claims about Nodax are exaggerated and misleading.” While Danimer reportedly asserts its claims are factual, the article cites at least one expert as stating that making broad claims about Nodax’s biodegradability “is not accurate” and is “greenwashing.”
Following this news, shares of Danimer’s common stock fell $6.43 per share, or 13% in value, to close at $43.55 per share on March 22, 2021, on heavy trading volume.
IMPORTANT DEADLINE: Investors who purchased Danimer’s securities during the Class Period may, no later than July 13, 2021, seek to be appointed as a lead plaintiff representative in the action.
Danimer investors who suffered an investment loss in excess of $100,000 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq.) at (484) 258 – 1585, or by completing the information form on this page, for additional information about the opportunity to actively participate in the action as a lead plaintiff representative.