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SAN FRANCISCO, Oct. 18, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Ginkgo Bioworks Holdings, Inc. (NYSE: DNA) investors with significant losses to submit your losses now.
Ginkgo Bioworks Holdings, Inc. (DNA) Investigation:
Ginkgo Bioworks is a synthetic biology company that uses a cell programming platform called “Ginkgo Foundry” to assist companies in finding more effective ways to create products.
The company has touted its 70 major customer programs utilizing its platform, its growing upfront Foundry revenues and downstream royalty revenue potential. These claims allowed Ginkgo Bioworks to go public via a SPAC transaction in Sep. 2021 with a $15 billion valuation, generating over $1.63 billion in gross proceeds.
The accuracy of Ginkgo Bioworks’ claims came into serious question on Oct. 6, 2021, when analyst Scorpion Capital published a scathing investigative report concluding “Ginkgo is a house of cards – in our opinion, one of the most brazen frauds of the last 20 years.”
According to the report, Ginkgo Bioworks’ business model is a related-party model whereby essentially 100% of the company’s deferred revenue are derived from related-party “customers” it created, funded, controls or influences via its ownership position and board seats. Scorpion alleges “[i]nvestments into these entities by Ginkgo and its largest investors are recycled back to Ginkgo and recorded as deferred or current revenue.” Scorpion also alleges Ginkgo has engaged in a brazen effort to misclassify and misreport related-party revenue and deceive investors with phony accounting and at least half of Ginkgo’s reported foundry revenue is phantom, non-cash and “pure accounting hocus-pocus.”
Shares in Ginkgo Bioworks have fallen 20% after publication of the report.
“We’re focused on investors’ losses and whether Ginkgo has concealed related-party revenue and engaged in accounting improprieties,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Ginkgo Bioworks and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Ginkgo Bioworks should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DNA@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895