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Ginkgo Bioworks Holdings, Inc. Class Action Lawsuit - DNA

Company Name
Ginkgo Bioworks Holdings, Inc.
Stock Symbol
DNA
Class Period
May 11, 2021 to October 5, 2021
Motion Deadline
January 17, 2022
Court
Northern District of California
49 days left to seek lead plaintiff status

Case Summary

The Ginkgo class action lawsuit seeks to represent purchasers of Ginkgo Bioworks Holdings, Inc. f/k/a Soaring Eagle Acquisition Corp. (NYSE: DNA) securities between May 11, 2021 and October 5, 2021, inclusive (the “Class Period”) and charges Ginkgo along with certain Ginkgo and Soaring Eagle top executives with violations of the Securities Exchange Act of 1934.  The Ginkgo class action lawsuit was commenced on November 18, 2021 in the Northern District of California and is captioned Stuart v. Ginkgo Bioworks Holdings, Inc. f/k/a Soaring Eagle Acquisition Corp., No. 21-cv-08943

If you wish to serve as lead plaintiff of the Ginkgo class action lawsuit, please provide your information by clicking here.  You can also contact attorney Jennifer Caringal of Robbins Geller by calling 800/449-4900 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Ginkgo class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: Ginkgo purportedly operates a horizontal platform for cell programming, designed to enable biological production of products as diverse as novel therapeutics, key food ingredients, and chemicals currently derived from petroleum.  Before the merger with special purpose acquisition company (“SPAC”) Soaring Eagle Acquisition Corp., Ginkgo was known as Ginkgo Bioworks, Inc.

The Ginkgo class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Ginkgo’s failure to derive real revenue from third-party customers left it almost completely dependent on related parties; (ii) as a result, most, if not all, of Ginkgo’s revenue came from related parties Ginkgo created, funded, or controlled through its ownership and board seats; (iii) Ginkgo was misclassifying and underreporting related party revenue in order to conceal Ginkgo’s near total-dependence on related parties; (iv) many of Ginkgo’s new R&D partners are undisclosed related parties and/or façades; (v) thus, Ginkgo’s valuation was significantly less than defendants disclosed to investors; and (vi) consequently, defendants’ public statements were materially false and/or misleading at all relevant times.

On October 6, 2021, market researcher Scorpion Capital released a 175-page report alleging that Ginkgo is a “colossal scam,” and describing Ginkgo as a “shell game” whose revenue is highly dependent on related party transactions.  The report alleges, among other things, that Ginkgo is a “Frankenstein mash-up of the worst frauds of the last 20 years” and “one of the most brazen frauds of the last 20 years.”  The report further stated that “[t]he majority of [Ginkgo’s] foundry revenue, an absurd 72% in 2020, and essentially 100% of its deferred revenue are derived from related-party ‘customers’ it created, funded, controls, or influences via its ownership position and board seats.”  On this news, Ginkgo’s shares fell by approximately 12%, damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Ginkgo securities during the Class Period to seek appointment as lead plaintiff in the Ginkgo class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Ginkgo class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Ginkgo class action lawsuit.  An investor’s ability to share in any potential future recovery of the Ginkgo class action lawsuit is not dependent upon serving as lead plaintiff. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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