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ORGN.US

id: 810

Origin Materials ($ORGN) $9M Investor Settlement

Eligible claimants can submit their claims for compensation.

$9,000,000

Cash Settlement

E.D. California

Court

2:23-cv-01816

Case number

03/07/2023

Class period Start

08/09/2023

Class period End

05/04/2026

Claim deadline

Origin Materials ($ORGN) has agreed to a $9M settlement to resolve claims that it misled investors about the status, demand, and commercial viability of its Origin 2 plant, overstating its progress and market potential.

Outline:

Origin repeatedly told investors that construction of its Origin 2 facility was on track and that demand for its sustainable materials was strong. Investors later alleged the company overstated both the project’s progress and the strength of its commercial pipeline. In August 2023, Origin revealed it had halted construction and would reassess its strategy. The stock collapsed and investors filed suit, leading to a tentative settlement.

Timeline:

August–December 2022: Origin stated that Origin 2 construction was progressing and demand remained strong.
February 23, 2023: The company reiterated that Origin 2 was on schedule and that customer demand exceeded capacity.
May 10, 2023: Origin again cited strong demand and progress toward mechanical completion of Origin 1.
August 9, 2023: Origin disclosed it had paused construction of Origin 2 and would reassess capital needs and demand.
August 10, 2023: $ORGN fell approximately 66% following the announcement.
September 2023: Investors filed a securities class action lawsuit.
October 2025: The parties settled.
Background:

Origin Materials is a California-based company focused on producing carbon-negative materials as alternatives to petroleum-based plastics. Its strategy centered on building large-scale facilities capable of converting biomass into sustainable materials for industries such as packaging and textiles.

The company’s flagship project, Origin 2, was intended to be a major commercial production plant and a key driver of future revenue. From late 2022 through mid-2023, Origin repeatedly assured investors that construction was progressing and that customer demand supported the facility’s planned capacity.

On August 9, 2023, Origin abruptly announced it would halt construction of Origin 2 and reassess its capital project strategy and customer demand outlook. The disclosure contradicted earlier statements suggesting the project was progressing normally and that demand was strong.

The announcement triggered a sharp market reaction, with $ORGN dropping about 66% in a single day. Investors alleged the company and its executives had made materially misleading statements about the plant’s progress, its financial outlook, and the strength of its customer demand pipeline.

What Can Investors Expect Now?

Origin Materials has agreed to a settlement with $ORGN investors to resolve claims tied to statements about the progress, demand, and commercial viability of the Origin 2 plant.

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.

Case Type

US Securities Class Action

Case Status

Accepting Claims

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

2.83

Filing date

08/25/2023

Lead Plaintiff Deadline

08/24/2023

Plaintiffs

Antonio F. Soto

Attorneys

Block & Leviton LLP (San Mateo, CA)

Defendants

Richard J. Riley, John Bissell, Nate S. Whaley,

Judge

Hon. William B. Shubb

Administrator

Strategic Claims Services

Court hearing date

06/08/2026

Exclusion deadline

05/04/2026

Objection deadline

05/04/2026

Trades matching type

FIFO

Frequently Asked Questions

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