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ZY.US
id: 1784

Zymergen ($ZY) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.
N.D. California
Court
5:21-cv-06028
Case number
04/22/2021
Class period Start
08/04/2021
Class period End
Zymergen has reached a settlement with $ZY investors to resolve claims that it misled them in connection with its 2021 IPO by overstating its product readiness, commercial potential, and financial outlook.

Outline:

Zymergen went public in April 2021 while promoting Hyaline as commercially viable and emphasizing strong demand and near-term growth. Months later, the company disclosed Hyaline had unexpected performance issues and that commercial revenue would be delayed. After these disclosures, $ZY collapsed, including a 68% drop on August 4, 2021, and investor claims followed. Zymergen later reached a tentative settlement to resolve those allegations.

Timeline:
  • April 2021: Zymergen completed its IPO, raising over $500 million.
  • August 3, 2021: Zymergen disclosed that Hyaline was underperforming and commercial revenue would be delayed.
  • August 4, 2021: $ZY plunged 68%, wiping out more than $2.5 billion in market value.
  • August 2021: CEO Josh Hoffman resigned amid the fallout.
  • March 2022: Investors filed suit alleging IPO-related misstatements.
  • December 2025: Zymergen reached a tentative settlement to resolve all claims.

Background:

Ahead of its IPO, Zymergen promoted Hyaline, a film material for electronics, as its lead commercial product and portrayed itself as a key innovator in synthetic biology. Its public messaging emphasized product readiness, strong demand, and near-term revenue growth.

Within months of going public, Zymergen disclosed that Hyaline was underperforming and that commercial revenue would be delayed, and it withdrew financial guidance. The description states the stock collapsed, including a 68% drop on August 4, 2021, and a broader decline of more than 70%.

Shareholders allege these outcomes contradicted the company’s earlier picture of Hyaline’s performance and market demand. The claims contend Zymergen overstated its technology, customer pipeline, and the viability of its business model in connection with the IPO.

What Can Investors Expect Now?

Zymergen has reached a settlement with $ZY investors to resolve claims tied to alleged misstatements about Hyaline and the company’s commercial and financial outlook around its 2021 IPO.

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
Tentative Settlement
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Filing date
08/04/2021
Lead Plaintiff Deadline
10/04/2021
Plaintiffs
Iron Workers Local 580 Joint Funds
Attorneys
Robbins Geller Rudman & Dowd LLP
Defendants
Joshua Hoffman; Jay Flatley
Judge
Jeffrey S. White
Trades matching type
FIFO

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