GlobeNewswire Inc | Nov 24, 2021 10:16AM EST

November 24, 2021

NEW YORK, Nov. 24, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against of Ginkgo Bioworks Holdings, Inc. (Ginkgo or the Company) (NYSE: DNA) in the United States District Court for the Northern District of California on behalf of those who purchased Ginkgo common stock between May 11, 2021 and October 5, 2021, inclusive (the Class Period).

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.

The Complaint alleges that Defendants made false and/or misleading statements and failed to disclose that: (i) the Companys failure to derive real revenue from third-party customers left it almost completely dependent on related parties; (ii) 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; (iii) the Company was misclassifying and underreporting related party revenue in order to conceal the Company's near total-dependence on related parties; and (iv) many of the Companys new R&D partners are undisclosed related parties and/or faades.

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, Ginkgos 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.

Investors who purchased or otherwise acquired shares of Ginkgo during the Class Period should contact the Firm prior to the January 17, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish 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 tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.