GlobeNewswire Inc | Jun 3, 2021 09:50AM EDT

June 03, 2021

NEW YORK, June 03, 2021 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Danimer Scientific, Inc. (Danimer or the Company) (NYSE: DNMR) and certain of its officers and directors. The class action, filed in the United States District Court for the Eastern District of New York, and docketed under 21-cv-02708, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Danimer securities between December 30, 2020 and March 19, 2021, both dates inclusive (the Class Period), seeking to recover damages caused by Defendants violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are a shareholder who purchased Danimer securities during the Class Period, you have until July 13, 2021 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Danimer was formerly known as Live Oak Acquisition Corp. (Live Oak), a publicly-traded special purpose acquisition company. In December 2020, Live Oak consummated a business combination with Meredian Holdings Group, Inc., doing business as Danimer Scientific (Legacy Danimer), a performance polymer company specializing in bioplastic replacements for traditional petrochemical-based plastics (the Business Combination). Following the Business Combination, Live Oak changed its name to Danimer Scientific, Inc., changed its business to Legacy Danimers business, and replaced its management with Legacy Danimers management.

Since 2020, Legacy Danimerand, following the Business Combination, Danimerhas sold polyhydroxyalkanoates commercially under its proprietary Nodax brand name for usage in a wide variety of plastic applications including water bottles, straws, and food containers, among others. The Company has touted Nodax as a 100% biodegradable, renewable, and sustainable plastic, which is purportedly superior to traditional plastics because of its advanced biodegradability. The Company attributes Nodaxs advanced biodegradability to microorganisms in nature that eat the bioplastic.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Companys business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Danimer had deficient internal controls; (ii) as a result, the Company had misrepresented, inter alia, its operations size and regulatory compliance; (iii) Defendants had overstated Nodaxs biodegradability, particularly in oceans and landfills; and (iv) as a result, the Companys public statements were materially false and misleading at all relevant times.

On March 20, 2021, the Wall Street Journal (WSJ) published an article entitled Plastic Straws That Quickly Biodegrade in the Ocean, Not Quite, Scientists Say addressing, among other things, Danimers claims that Nodax breaks down far more quickly than fossil-fuel plastics. The WSJ article alleged that, according to several experts on biodegradable plastics, many claims about Nodax are exaggerated and misleading. While Danimer reportedly asserts its claims are factual, the article cites at least one expert as stating that making broad claims about Nodaxs biodegradability is not accurate and is greenwashing.

On March 22, 2021, the first trading day following the publication of the WSJ article, Danimers stock price fell $6.43 per share, or 12.87%, to close at $43.55 per share on March 22, 2021.

Following the end of the Class Period, on April 22, 2021, Spruce Point Capital Management (Spruce Point) published a report on Danimer, noting, among other red flags, various inconsistencies with Legacy Danimers (and Danimers) historical and present claims regarding the size of its operations, Nodaxs makeup and degradability, and the Companys expected profitability.

Following the publication of the Spruce Point report, Danimers stock price fell $2.01 per share, or 8.04%, to close at $22.99 per share on April 22, 2021.

Then, on May 4, 2021, Spruce Point published another report on Danimer alleging that the Company had wildly overstated production figures, pricing, and financial projections based on documents Spruce Point had acquired from the Commonwealth of Kentuckys Department of Environmental Protection under the Freedom of Information Act, all of which cast serious doubt on the integrity of the Companys internal controls.

Following the publication of this second Spruce Point report, Danimers stock price fell $1.49 per share, or 6.31%, to close at $22.14 per share on April 22, 2021.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT:Robert S. WilloughbyPomerantz LLPrswilloughby@pomlaw.com888-476-6529 ext. 7980