Wang v. Zymergen Inc.
Case Summary
Individual Investor-Led Case Secured $125 Million Following Zymergen’s IPO and Bankruptcy
Robbins Geller Rudman & Dowd LLP secured a $125 million recovery for investors in a securities class action arising from biotechnology company Zymergen Inc.’s initial public offering. The recovery was achieved after four years of litigation, during which Zymergen declared bankruptcy. The settlement represents approximately 28% of estimated recoverable damages and is one of the largest IPO-related securities class action recoveries obtained in the Northern District of California.
Zymergen completed its IPO in April 2021, raising approximately $530 million. The case alleged that the Registration Statement issued in connection with the IPO misrepresented and omitted material facts concerning the company’s flagship product candidate, Hyaline, its commercial readiness, and Zymergen’s expected revenue generation.
Less than four months after the IPO, Zymergen disclosed that Hyaline production was experiencing issues and that its commercial opportunity was smaller than previously represented. The company also announced that it did not expect product revenue during 2021, that projections for later years were uncertain, that its CEO had been terminated, and that its board was conducting an in-depth review of the company’s operations. These disclosures caused Zymergen’s stock price to decline significantly, damaging investors who acquired shares pursuant or traceable to the IPO.
The litigation sought to hold accountable a broad group of defendants, including former Zymergen officers and directors, financial institutions that underwrote the IPO, including J.P. Morgan and Goldman Sachs, and venture capital funds, including SoftBank, that made significant investments in Zymergen before the IPO. Zymergen’s bankruptcy added further complexity to the case, but the litigation continued against the remaining defendants.
After the court largely denied defendants’ motions to dismiss the core claims, the case proceeded through class certification, amended pleadings, and additional motion practice concerning the scope of defendants’ potential liability. In October 2026, the court granted final approval to the $125 million settlement.
Robbins Geller attorneys Shawn A. Williams, Daniel J. Pfefferbaum, and Patton L. Johnson litigated the case on behalf of individual lead plaintiff Biao Wang and the class. West Palm Beach Firefighters’ Pension Fund also served as a plaintiff in the litigation.
Wang v. Zymergen Inc., No. 5:21-cv-06028-PCP (N.D. Cal.).