Ginkgo Bioworks Holdings, Inc. (DNA) Failed to Disclose its Related Party Revenue
A class action was filed on behalf of all persons and entities that purchased Ginkgo Bioworks Holdings, Inc. f/k/a Soaring Eagle Acquisition Corp. (NYSE: DNA) securities between May 11, 2021 and October 5, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. 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.
According to the complaint, on May 11, 2021, the Company announced it would combine with Soaring Eagle to form Ginkgo Bioworks Holdings, Inc. During the class period, defendants failed to disclose that: (i) most, if not all, of the Company’s revenue came from related parties the Company created, funded, or controlled through its ownership and board seats; (ii) the Company was misclassifying and underreporting related party revenue in order to conceal the Company’s near total-dependence on related parties; and (iii) many of the Company’s new R&D partners were undisclosed related parties or facades.
On October 6, 2021, Scorpion Capital released a report alleging that Ginkgo is a “colossal scam,” and describing the Company as a “shell game” whose revenue is highly dependent on related party transactions. The report alleges 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 claimed that Ginkgo underreported its related party transactions in order to go public. On this news, the Company’s share price fell approximately 12%, to close at $10.59 per share on October 6, 2021.
If you purchased Ginkgo Bioworks Holdings, Inc. (DNA) securities between May 11, 2021 and October 5, 2021, you have until January 17, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.