DNA.US
id: 1159
Ginkgo Bioworks (DNA) $17.75M Investor Settlement
N.D. California
Court4:21-cv-08943
Case number11 May 2021
Class period Start05 Oct 2021
Class period End21 Nov 2024
Claim deadlineGinkgo Bioworks ($DNA) has decided to pay $17.75M settlement to investors to resolve claims related to the Scorpion Capital report and reliance on related parties for revenue.
Outline:
In 2021, the Scorpion Capital published a report on Ginkgo Bioworks, calling Ginkgo one of the worst frauds in the last 20 years. Following this news, $DNA drastically fell, and Ginkgo faced a lawsuit from investors.
Timeline:
- On October 6, 2021: the Scorpion Capital released a report calling Ginkgo “colossal scam.”
- Following this news, $DNA fell 12% the same day.
- On November 16, 2021: Ginkgo disclosed a DOJ investigation into financial misconduct claims.
- On November 18, 2021: $DNA stockholder filed a claim against Ginkgo based on all the undisclosed issues mentioned in the Scorpion's report.
Background:
On October 6, 2021, the Scorpion Capital released a report calling Ginkgo one of the worst frauds in the last 20 years, comparing it to previous major scams.
The report stated that most of Ginkgo’s revenue comes from related-party transactions.
Scorpion also said that the investigation included 21 interviews with former and current employees of Ginkgo and its related-party "customers".
On November 16, 2021, Ginkgo disclosed a DOJ investigation into financial misconduct claims from the Scorpion report.
In response to the DOJ inquiry, Ginkgo organized an independent investigation, which concluded that “suggestion of fraud, reporting violations, accounting errors, or other wrongdoing contained in the short seller’s report were unfounded and importantly that no restatement of our financials was needed.”
What can investors expect now?
Ginkgo Bioworks has decided to pay $17.75M settlement to investors to resolve claims related to the Scorpion Capital report and its reliance on related parties for revenue.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.1
Filing date
18 November 2021
Lead Plaintiff Deadline
18 January 2022
Plaintiffs
Kevin Stuart
Attorneys
Pomerantz LLP (Chicago, IL), The Schall Law Firm (Los Angeles, CA)
Defendants
Harry E. Sloan, Eli Baker, Scott M. Delman, Joshua Kazam, Isaac Lee, Timothy Leiweke, Dennis A. Miller, Laurence E. Paul, Jason Kelly, Reshma Shetty, Arie Belldegrun, Marijn Dekkers, Christian Henry, Reshma Kewalramani, Shyam Sankar, Anna Marie Wagner
Judge
Hon. Yvonne Gonzalez Rogers
Administrator
Strategic Claims Services
Settlement agreement date
2024-04-04
Court hearing date
05 December 2024
Exclusion deadline
21 November 2024
Objection deadline
21 November 2024
Hearing deadline
21 November 2024
Attorney fee
$4,762,500
Class wide damages
$17,750,000
Trades matching type
FIFO
+$17,750,000
Cash Settlement Amount