Norfolk County Retirement System v. Solazyme, Inc.
Status: Ongoing Case
On June 24, 2015, Labaton Sucharow filed a class action complaint on behalf of investors in Solazyme, Inc., a bioproducts company that produces consumer oils using an algae-fermentation process, alleging securities fraud and other violations of the federal securities laws. On October 8, 2015, the court appointed Labaton Sucharow as co-lead counsel on behalf of the putative class, and counsel then filed a consolidated complaint, adding further detail concerning the securities violations.
The complaint alleges that from February 27, 2014 through November 5, 2014, Solazyme made false and misleading statements and concealed material adverse facts related to the construction, scalability, and outlook for a significant sugarcane processing plant Solazyme was developing in Moema, Brazil. While its securities were trading at artificially inflated prices as a result of these misrepresentations, Solazyme issued more than $60 million in stock and nearly $150 million in notes in two registered public offerings.
On December 29, 2016, the court dismissed the complaint, with leave to amend. The lead plaintiffs filed an Amended Complaint on February 15, 2017. The briefing for the defendants' motion to dismiss is currently taking place. A hearing is scheduled for June 1, 2017.
The case is Norfolk County Retirement System v. Solazyme, Inc., No. 15-CV-2938 (N.D. Cal.). Labaton Sucharow represents the lead plaintiff Norfolk County Retirement System. The defendant is Solazyme, Inc.