Mulderrig v. Amyris, Inc., et al 4:19-cv-01765-YGR — On April 3, 2019, investors sued Amyris, Inc. (“Amyris” or the “Company” in United States District Court, Northern District of California. The AMRS class action alleges that plaintiffs acquired Amyris stock at artificially inflated prices between March 15, 2018 and March 19, 2019 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the AMRS Lawsuit, please contact us today!

Summary of the Allegations

Company Background

The Company (NASDAQ: AMRS) is an “integrated renewable products company “that engages in the creation and provision of” sustainably sourced product.

As such, Amyris claims that it uses “innovative ​bioscience solutions” to ​turn plant sugars into ​hydrocarbon molecules, ​specialty ingredients and ​consumer products.” These products are then used in select markets including  ​“specialty and performance ​chemicals, fragrance ​ingredients, and cosmetic ​emollients.”

Amyris is incorporated in Delaware and its headquarters are located in Emeryville, California.

Summary of Facts

The Company and two of its senior officers (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding critical information about the Company’s business practices and prospects during the Class Period.

Specifically, they are accused of omitting truthful information about the efficacy of its accounting practices and internal controls over financial reporting from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Amyris stock to trade at artificially inflated prices during the time in question.

The truth came out after the market closed on March 19, 2019, when the Company filed a form with the SEC. In it, Amyris announced that it was “in the process of completing its evaluation internal control over financial reporting and may have further deficiencies to report.” The Company also stated that it expected to “continue to report that there is substantial doubt about its ability to continue as a going concern.”

A closer look…

As alleged in the April 3 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.

For instance, on a form filed with the SEC on April 2, 2018, the Company stated in pertinent part: “Amyris, Inc. (the “Company”) was unable to file its Annual Report… within the prescribed time period without unreasonable effort and expense because of the significant time and resources the were devoted to the accounting for and disclosure of the significant transaction with Koninkliijke DSM N.V. that closed on December 28, 2017.”

Then, on another form filed with the SEC on April 17, 2018, Amyris disclosed “certain material weaknesses identified by management.”

On yet another form filed with the SEC on May 18, 2018, the Company also stated that, “the previously-identified material weakness in internal control over financial reporting had not yet been remediated.”

Finally, in a press release issued on November 13, 2018, one of the Individual Defendants stated in pertinent part: “… we are very disappointed with the volatility of the Vitamin E market and its direct impact on our third quarter revenue. Some of this shortfall is expected be [sic] made up with our core market revenue performance through year end.”

What the Company never disclosed, however, was that the actual cause of its material weakness in its internal control over financial reporting was a lack of “sufficient resources to accurately account for certain transactions.”

Impact of the Alleged Fraud on Amyris’s Stock Price and Market Capitalization

The following chart illustrates the stock price during the class period:

Actions You May Take

If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.

NOTE: You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.

In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Amyris common stock using court approved loss calculation methods.

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Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action.  Please contact us if you would like an LK report for any of these cases:

About Us

Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse.  With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.

Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients.  Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.

For additional information about this case or our institutional services, please contact us.