NEW YORK, June 26, 2015 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased Solazyme, Inc. (“Solazyme” or the “Company”) (Nasdaq:SZYM) securities between February 27, 2014 and November 5, 2014, inclusive (“Class Period”), alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
According to the Complaint, Defendants made false and misleading statements about the construction progress, development, and expected production capacity associated with the Company’s renewable oils production facility located in Moema, Brazil (the “Moema Facility”). The Complaint alleges that Defendants caused the Company 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 would prohibit the Moema Facility from scaling its capacity production as projected. The Complaint further alleges that certain Defendants made false and misleading statements and failed to disclose material adverse information in offering documents filed with the SEC 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.
On November 5, 2014, the truth about the Company’s cover-up concerning the delays at the Moema Facility began to be revealed when the Company announced that it would “narrow [its] production focus to smaller volumes of higher value products” due to continued issues generating consistent power and steam. As a result of this news, the Company’s stock price fell 58%, wiping out hundreds of millions of its market value.
If you wish to serve as lead plaintiff, you must move the Court no later than August 24, 2015. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at firstname.lastname@example.org or email@example.com.
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Source:Gainey McKenna& Egleston