An investigation on behalf of investors of Danimer Scientific, Inc. (NYSE: DNMR) shares over potential securities laws violations by Danimer Scientific, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Danimer Scientific, Inc. (NYSE: DNMR) concerning whether a series of statements by Danimer Scientific, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Bainbridge, GA based Danimer Scientific, Inc., a performance polymer company, develops, produces, and provides bioplastic replacements for traditional petrochemical-based plastics.
Danimer Scientific, Inc reported that its annual Total Revenue rose from $32.34 million in 2019 to $47.33 million in 2020, and that its Net Loss declined from $19.51 million in 2019 to $12.57 million in 2020.
On March 20, 2021, The Wall Street Journal published an article entitled "Plastic Straws That Quickly Biodegrade in the Ocean, Not Quite, Scientists Say" addressing, among other things, Danimer's claims that Nodax, a plant-based plastic that Danimer markets, breaks down far more quickly than fossil-fuel plastics. The article alleges that according to several experts on biodegradable plastics, "many claims about Nodax are exaggerated and misleading."
According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer's marketing is "sensationalized" and that making broad claims about Nodax's biodegradability "is not accurate" and is "greenwashing."
Shares of Danimer Scientific, Inc. (NYSE: DNMR) declined to as low as $34.15 per share on March 30, 2021.