Block & Leviton LLP (www.blockleviton.com), a national securities litigation firm, announces that it is investigating Danimer Scientific, Inc. (NYSE: DNMR) for potential violations of the federal securities laws.
Danimer produces a biodegradable plastic alternative sold under the brand name Nodax. On March 20, 2021, the Wall Street Journal published an article entitled “Plastic Straws That Quickly Biodegrade in the Ocean? Not Quite, Scientists Say.” The WSJ article provided that although “Nodax breaks down far more quickly than fossil-fuel plastics . . . many claims about Nodax are exaggerated and misleading, according to several experts on biodegradable plastics.” According to the article, Jason Locklin, the expert who co-authored the study touted by Danimer as validating its material, stated that Danimer’s marketing is “sensationalized” and that making broad claims about Nodax’s biodegradability“ is not accurate” and is “greenwashing.” On this news, Danimer’s stock price fell $6.43 per share, or approximately 13%, to close at $43.55 on March 22,2021. Shares continued to plummet over the next several trading days.