NEW YORK, March 01, 2023 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) on behalf of long-term stockholders following a class action complaint that was filed against Ginkgo Bioworks with a Class Period from May 11, 2021 to October 5, 2021. Our investigation concerns whether the board of directors of Ginkgo Bioworks have breached their fiduciary duties to the company.
Ginkgo operates a horizontal platform for cell programming, designed to enable biological production of products such as novel therapeutics, key food ingredients, and chemicals currently derived from petroleum. Before the merger with special purpose acquisition company (“SPAC”) Soaring Eagle Acquisition Corp. (“Soaring Eagle”), the Company was known as Ginkgo Bioworks, Inc.
According to the complaint, Defendants made false and/or misleading statements and failed to disclose that: (1) the Company's failure to derive real revenue from third-party customers left it almost completely dependent on related parties; (2) most, if not all, of the Company's revenue came from related parties the Company created, funded, or controlled through its ownership and board seats; (3) the Company was misclassifying and underreporting related party revenue in order to conceal the Company's near total-dependence on related parties; and (4) many of the Company's new R&D partners are undisclosed related parties and/or façades.
On October 6, 2021, market researcher Scorpion Capital released a 175-page report alleging that Ginkgo is a “colossal scam,” describing the Company as a “shell game” whose revenue is highly dependent on related party transactions. The report alleges that Gingko is a “Frankenstein mash-up of the worst frauds of the last 20 years” and “one of the most brazen frauds of the last 20 years.” On this news, Ginkgo’s shares fell $1.39 per share, or approximately 12%, to close at $10.59 per share on October 6, 2021, damaging investors.
On November 15, 2021, the Company acknowledged that shortly after the Scorpion Capital report, Ginkgo received an inquiry from the United States Department of Justice relating to the financial misconduct allegations in the report.
If you are a long-term stockholder of Ginkgo Bioworks, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at email@example.com, by telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.