A lawsuit was filed by a current investor in Solazyme Inc (NASDAQ:SZYM) over alleged breaches of fiduciary duties by certain directors and NASDAQ:SZYM stockholders should contact the Shareholders Foundation.
San Diego, CA -- (SBWIRE) -- 09/24/2015 -- A shareholder in NASDAQ:SZYM shares filed a lawsuit against certain Solazyme directors over alleged wrongdoing that caused damages to the company and its stockholders.
Investors who are current long term investors in Solazyme Inc (NASDAQ:SZYM) shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges that certain directors of Solazyme Inc failed to disclose certain production issues in Brazil and when the truth was revealed the share price of Solazyme Inc (NASDAQ:SZYM) declined. According to the lawsuit, beginning February 13, 2014 to November 5, 2014, certain directors failed to disclose that Solazyme's renewable oils production facility in Moema was experiencing difficulties due to insufficient access to electricity and steam, that the production facility was experiencing design and construction issues, and that the facility could not scale its production in a cost-effective manner.
Solazyme Inc currently faces a lawsuit over alleged securities laws violations. According to that complaint filed in the U.S. District Court for the Northern District of California the plaintiff alleges that between February 27, 2014 and November 5, 2014 certain Defendants made allegedly false and misleading statements and allegedly concealed material information relating to the construction progress, development, and expected production capacity of the Company's renewable oils production facility located in Moema, Brazil (the "Moema Facility"), and that Defendants caused Solazyme Inc (NASDAQ:SZYM) securities to trade at artificially inflated prices by improperly concealing ongoing construction delays due to insufficient access to electricity and steam utility services, and that these challenges allegedly prohibited the Moema Facility from scaling its capacity production as projected.
Additionally, the plaintiff alleges that Solazyme Inc, certain of its officers and directors, and the underwriters of the two registered public offerings on or about March 27, 2014violated Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. More specifically, the plaintiff alleges that certain Defendants made false and misleading statements and failed to disclose material adverse information in offering documents filed with the U.S. Securities and Exchange Commission in connection with the issuance of approximately $149.5 million in convertible notes on or about March 27, 2014, and that 5.75 million shares of common stock on the same day at $11.00 per share for aggregate gross proceeds of approximately $63.25 million.
On November 5, 2014, Solazyme Inc reported its third quarter 2014 results. Solazyme Inc announced that its third quarter Revenue rose from $10.62 million in 2013 to $17.55 million in 2014 and that its third quarter Net Loss increased from $30.7 million in 2013 to $39.67 million in 2014. Shares of Solazyme Inc (NASDAQ:SZYM) declined to as low as $2.89 per share on November 6, 2014. In fact, NASDAQ:SZYM shares declined from as high as $14 per share in early 2014 to under $3 per share in early November 2014, respectively $2.00 per share on January 29, 2015.
Those who purchased shares of Solazyme Inc (NASDAQ:SZYM) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego