Ginkgo Bioworks (DNA) $17.75M Investor Settlement
On October 6, 2021: the Scorpion Capital released a report calling Ginkgo “colossal scam.”
Following this news, $DNA fell 12% the same day.
On November 16, 2021: Ginkgo disclosed a DOJ investigation into financial misconduct claims.
On November 18, 2021: $DNA stockholder filed a claim against Ginkgo based on all the undisclosed issues mentioned in the Scorpion's report.
The report stated that most of Ginkgo’s revenue comes from related-party transactions.
Scorpion also said that the investigation included 21 interviews with former and current employees of Ginkgo and its related-party "customers".
On November 16, 2021, Ginkgo disclosed a DOJ investigation into financial misconduct claims from the Scorpion report.
In response to the DOJ inquiry, Ginkgo organized an independent investigation, which concluded that “suggestion of fraud, reporting violations, accounting errors, or other wrongdoing contained in the short seller’s report were unfounded and importantly that no restatement of our financials was needed.”
What can investors expect now?
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons or entities who (1) purchased or otherwise acquired shares in Ginkgo, including by way of exchange SRNG shares, pursuant or traceable to the Proxy/Registration Statement that Defendants filed with the SEC on Form S-4 on May 14, 2021, and that was thereafter amended on Forms S-4/A on June 28, 2021, July 16, 2021, August 4, 2021, and August 9, 2021 and the body of which was incorporated into the final prospectus on Form 424(b)(3) filed on August 13, 2021; (2) were solicited to approve the Ginkgo Bioworks, Inc.- SRNG merger and to retain rather than redeem SRNG shares pursuant to the Proxy/Registration Statement; and/or (3) purchased or otherwise acquired in a public offering or on public markets securities of Ginkgo (including its predecessor SRNG) between May 11, 2021 and October 5, 2021, both dates inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.1 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.4 per share.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:
Prepare documents for your payout
Audit the claim and make sure you get the maximum possible payout
File a claim with the settlement administration
Correspond with the settlement administration to resolve emerging issues
Deliver payout directly to your brokerage account
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.