- Company Name
- Amyris, Inc.
- Stock Symbol
- Class Period
- March 15, 2018 to March 19, 2019
- Motion Deadline
- June 2, 2019
- Northern District of California
The complaint charges Amyris and certain of its officers with violations of the Securities Exchange Act of 1934. Amyris is an industrial biotechnology company that manufactures and sells natural, sustainably sourced products for the health and wellness, clean beauty and flavor and fragrance markets.
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose material adverse facts about the Company’s business and operations. Specifically, defendants failed to disclose that the Company lacked sufficient resources to accurately account for certain transactions, which resulted in a material weakness in the Company’s internal controls over financial reporting, and as a consequence, the Company would be unable to timely file its annual report on Form 10-K with the SEC. As a result of this information being withheld from the market, Amyris securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of more than $9 per share.
On November 13, 2018, the Company reported poor financial results for third quarter of 2018, with $14.9 million in revenue compared to $22.5 million in revenue for the prior year period. The Company attributed its poor performance to the “volatility of the Vitamin E. market.” On this news, the price of Amyris stock fell $1.76 per share, or nearly 30%, to close at $4.14 per share on November 14, 2018.
Then on March 19, 2019, after the market closed, Amyris announced that it would be unable to file its annual report on Form 10-K for the fiscal year ended December 31, 2018 in a timely manner, due to “the significant time and resources that were devoted to the accounting for and disclosure of the significant transactions with Koninklijke DSM N.V. that closed in November 2018.” The Company also disclosed that it was “in the process of completing its evaluation of internal control over financial reporting and may have further deficiencies to report. In addition, the Company expect[ed] to continue to report that there [was] substantial doubt about its ability to continue as a going concern.” On this news, the price of Amyris stock fell $0.78 per share, or nearly 20%, to close at $3.10 per share on March 20, 2019.