Bloomberg Law
May 14, 2021, 7:29 PM

Danimer Overstated Biodegradable Plastic’s Capability, Suit Says

Sylvia Carignan
Sylvia Carignan

Danimer Scientific Inc. made misleading claims about its biodegradable product and production figures, causing its investors significant damage, according to a Friday complaint in federal district court in New York.

Darryl Keith Rosencrants, an investor who acquired Danimer securities, alleged the company’s executives knew they were concealing information from the public. They artificially inflated the company’s value with false statements, according to a class action in the U.S. District Court for the Eastern District of New York.

The company, formerly Live Oak Acquisition Corp., combined with Meredian Holdings Group Inc. in December to become Danimer Scientific. The company sells polyhydroxyalkanoates, ...