NEW YORK, Aug. 28, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Origin Materials, Inc. (NASDAQ: ORGN)?
- Did you purchase your shares between February 23, 2023 and August 9, 2023, inclusive?
- Did you lose money in your investment in Origin Materials, Inc.?
- Do you want to discuss your rights?
Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the securities of Origin Materials, Inc. (“Origin” or the “Company”) (NASDAQ: ORGN) between February 23, 2023 and August 9, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Eastern District of California and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Origin securities, and/or would like to discuss your legal rights and options please visit Origin Materials, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, Origin is a sustainable materials company founded in 2008 by chemical engineering students at the University of California, Davis. The Company purports to have developed a platform to convert the carbon found in biomass into carbon negative materials that can replace the petroleum-based substances typically used in various end products. One of the sustainable materials in Origin’s platform is chloromethylfurfural (“CMF”), a building block chemical that can be converted into, among other products, (1) paraxylene (“PX”), a product that can replace non-sustainable chemicals in existing supply chains to produce polyethylene terephthalate (“PET”); and (2) furandicarboxylic acid (“FDCA”), which can be converted into polyethylene furanoate (“PEF”). According to the Company, these chemicals can be used in a variety of applications. PET’s applications include packaging, textiles, car parts, carpeting, toys, and construction materials, while FDCA and PEF’s include surfactants, epoxy resins, and packaging, with PEF having the potential to compete with glass and aluminum.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Among other things, Defendants failed to disclose to investors that: (1) Origin would not be able to meet its previously announced timeline for the construction of the Origin 2 plant; (2) demand for PX had dropped such that it would not be the production focus of Origin 2; (3) Origin could not construct Origin 2 at its previously disclosed cost; and (4) Origin could not construct Origin 2 at the scale it had previously identified.
On August 9, 2023, after the market closed, Origin announced that it was significantly delaying the timeline for construction on its Origin 2 commercial plant and changing the product slate at Origin 2 from a focus on PX to a focus on FDCA. The Company disclosed that it “now expects Origin 2 to be completed in two phases, with Phase 1 estimated to be completed in late 2026 to 2027, and Phase 2 estimated to be completed in 2028, compared with our initial expectation for a mid-2025 completion.” Origin blamed the delay on the “high-cost environment” for capital projects. The Company further revealed that the construction would cost more and yield less capacity than previously announced.
On this news, Origin’s stock price fell $2.88 per share, or 66.5%, to close at $1.45 per share on August 10, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than October 24, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Origin securities, and/or would like to discuss your legal rights and options please visit Origin Materials, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2023 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
