Robbins Arroyo LLP: TerraVia Holdings, Inc. (TVIA) Misled Shareholders According to a Recently Filed Class Action
November 22 2016 - 04:10PM
Business Wire
Shareholder rights law firm Robbins Arroyo LLP announces that a
class action complaint was filed against TerraVia Holdings, Inc.
(NASDAQGS: TVIA) in the U.S. District Court for the Northern
District of California. The complaint is brought on behalf of all
purchasers of TerraVia securities between August 8, 2016 and
November 7, 2016, for alleged violations of the Securities Exchange
Act of 1934 by TerraVia's officers and directors. TerraVia creates
and sells food, nutrition, and specialty ingredients from
algae.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/terravia-holdings-inc
TerraVia Accused of Misrepresenting Its Financial
Condition
According to the complaint, TerraVia stated on its official
website that its AlgaVia products delivered a unique set of
nutritional benefits, including: free of known allergens, healthy
and indulgent, high protein digestibility, and also stated that its
products "help make delicious foods that are better for people and
inspire solutions for a better planet." The company also submitted
several filings with the U.S. Securities and Exchange Commission,
which stated, "Our food oils are formulated to offer a variety of
functional benefits such as enhanced structuring capabilities and
stability while providing robust formulation and process
flexibility." However, the complaint alleges that TerraVia failed
to disclose that the company's products caused gastrointestinal
distress.
On November 7, 2016, Bloomberg published an article stating that
Rosa Foods, Inc.'s meal replacement drink, Soylent, contains an
algal flour ingredient provided by TerraVia that causes consumers
to become sick, and that Rosa Foods will be removing the ingredient
altogether from its products by early 2017. Although TerraVia's
Senior Vice President adamantly denied that the company's algal
flour was responsible, Bloomberg further reported that TerraVia
sent a letter in July to a distributor of a Colorado energy bar
company "warning that it had received a 'modest number of reports'
showing that algal protein can cause 'gastrointestinal distress.'"
On this news, TerraVia stock fell $0.15 per share, or over 8%, to
close at $1.70 per share on November 7, 2016.
TerraVia 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.
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Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003DDonahue@robbinsarroyo.comwww.robbinsarroyo.com