Labaton Sucharow Files Class Action Lawsuit on Behalf of Investors in Solazyme, Inc. (SZYM)
NEW YORK (June 24, 2015) – Labaton Sucharow LLP filed a securities class action lawsuit today in the U.S. District Court for the Northern District of California on behalf of all persons or entities who, between February 27, 2014 and November 5, 2014, inclusive (the class period), purchased or otherwise acquired the publicly traded securities of Solazyme, Inc. (Solazyme) (Nasdaq:SZYM), including certain securities issued by Solazyme pursuant and/or traceable to either of two registered public offerings on or about March 27, 2014 (the offerings).
Solazyme is a bioproducts company that produces oils from renewable sources. The company's technology focuses on the use of algae as part of a fermentation process that transforms plant materials into oils for use in a range of products, including skincare, food goods, and industrial applications. Solazyme maintains its principal executive offices in South San Francisco, California. The complaint charges Solazyme and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder.
The complaint alleges that certain defendants made false and misleading statements and concealed material information relating to the construction progress, development, and expected production capacity of the company's renewable oils production facility located in Moema, Brazil (the Moema facility). Specifically, the defendants caused Solazyme securities to trade at artificially inflated prices by improperly concealing ongoing construction delays due to insufficient access to electricity and steam utility services. These challenges prohibited the Moema facility from scaling its capacity production as projected.
Additionally, the complaint alleges that Solazyme, certain of its officers and directors, and the underwriters of the offerings violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. The complaint alleges that certain defendants made false and misleading statements and failed to disclose material adverse information in offering documents filed with the U.S. Securities and Exchange Commission in connection with the issuance of (i) approximately $149.5 million in convertible notes on or about March 27, 2014, and (ii) 5.75 million shares of common stock on the same day at $11.00 per share for aggregate gross proceeds of approximately $63.25 million.
The truth regarding the construction delays at the Moema facility, and resulting diminished production capacity, was revealed on November 5, 2014, when the company disclosed that it would "narrow [its] production focus to smaller volumes of higher value products" due to continued issues generating consistent power and steam. In reaction to this disclosure, Solazyme's stock price dropped $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.
If you purchased or acquired publicly traded Solazyme securities during the class period, you are a member of the class and may be able to seek appointment as lead plaintiff. A lead plaintiff is a court-appointed representative for absent members of the class. You do not need to seek appointment as lead plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
Lead plaintiff motion papers must be filed with the U.S. District Court for the Northern District of California no later than August 24, 2015.