SAN DIEGO and SOUTH SAN FRANCISCO, Calif., June 25, 2015 /PRNewswire/ -- Shareholder
rights law firm Robbins Arroyo LLP announces that a federal
securities fraud class action complaint was filed in the U.S.
District Court for the Northern District of California. The
complaint alleges that officers and directors of Solazyme, Inc.
(NASDAQ: SZYM) violated the Securities Exchange Act of 1934 between
February 27, 2014 and November 5, 2014, by engaging in a fraudulent
scheme to artificially inflate the prices of Solazyme
securities. Solazyme manufactures and sells renewable oils
and other bioproducts and maintains facilities in California, Illinois, Iowa, and Brazil.
View this information on the law firm's Shareholder Rights
Blog:
www.robbinsarroyo.com/shareholders-rights-blog/solazyme-inc
Solazyme Misrepresents Its Business Practices
According to the complaint, Solazyme officials made false and
misleading statements and concealed material information relating
to the construction progress, development, and production capacity
of the Company's production facility in Moema, Brazil. The
facility was designed to transform sugarcane into oil products with
a projected production capacity of 100,000 metric tons of oil per
year and was initially targeted for completion around the end of
2013.
In particular, the complaint alleges that Solazyme officials
periodically offered positive assessments of its progress toward
nameplate capacity at the facility, when it actually was
experiencing difficulties due to insufficient access to electricity
and steam utility services. In addition, Solazyme was
experiencing construction problems preventing the company form
scaling its production in a cost-effective manner. By
improperly concealing these difficulties, Solazyme officials caused
the company's securities to trade at artificially inflated prices.
The complaint further alleges that company officials made
false and misleading statements and failed to disclose material
adverse information in offering documents in connection with the
issuance of $149 million in
convertible notes and 5.75 million shares of stock valued at
approximately $63.25 million.
Solazyme finally acknowledged the significant and wide ranging
construction delays on November 5,
2014. The Company revealed that it would focus on producing
smaller volumes of higher value products at the facility due to the
utility issues it had been facing. On this news, Solazyme's
stock price declined $4.35 per share,
or 58%, to close at $3.14 per share
on November 6, 2014. Similarly,
the market price of Solazyme's Notes declined by $235.00 per Note, or 30.32%, to close at
$540.00 per Note on November 7, 2014.
Solazyme Shareholders Have Legal Options
Concerned shareholders who would like more information about
their rights and potential remedies can contact attorney
Darnell R. Donahue at (800)
350-6003, DDonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual and
institutional investors in shareholder derivative and securities
class action lawsuits, and has helped its clients realize more than
$1 billion of value for themselves
and the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800)
350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP