Kaskela Law LLC is investigating Ginkgo Bioworks Holdings, Inc. (“Ginkgo”) (NYSE: DNA) f/k/a Soaring Eagle Acquisition Corp. (NASDAQ: SRNG) on behalf of the company’s long-term stockholders.
The investigation seeks to determine whether the members of Ginkgo’s board of directors violated the securities laws or breached their fiduciary duties to stockholders in connection with recent corporate actions and disclosures, and if the company’s long-term stockholders have been harmed as a result of such action.
Ginkgo develops platform for cell programming. The current company was formed in September 2021 via a business combination with SPAC entity Soaring Eagle Acquisition Corp., with Ginkgo as the surviving, public entity.
On October 6, 2021, analyst Scorpion Capital published an investigative report concluding “Ginkgo is a house of cards – in our opinion, one of the most brazen frauds of the last 20 years.” The report indicated that Ginkgo’s business model is a related-party model whereby essentially 100% of the company’s deferred revenue are derived from related-party “customers” it created, funded, controls or influences via its ownership position and board seats. Scorpion also alleged that Ginkgo has engaged in a brazen effort to misclassify and misreport related-party revenue and deceive investors with phony accounting and at least half of Ginkgo’s reported foundry revenue is phantom, non-cash and “pure accounting hocus-pocus.” Following this news, shares of Ginkgo’s stock fell $1.39 per share, or approximately 12% in value, to close at $10.59 per share on October 6, 2021. Since that time, shares of the company’s stock have continued to decline, and currently trade at approximately $6.00 per share.
Current stockholders who purchased or acquired shares of Ginkgo or Soaring Eagle Acquisition Corp. stock prior to August 10, 2021 are encouraged to contact Kaskela Law LLC at (888) 715 – 1740, or by completing the information form on this page, for additional information about this investigation and their legal rights and options.