ORGN - Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Origin Materials Inc. (ORGN)
NEW YORK, Oct. 06, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of California on behalf of all persons or entities who purchased or otherwise acquired Origin Materials, Inc. (“Origin” or the “Company”) (NASDAQ: ORGN) securities between February 23, 2023, and August 9, 2023, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.
The Complaint alleges that Defendants failed to disclose material facts about Origin’s business, operations, and prospects. Specifically, the Complaint alleges that 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; (4) Origin could not construct Origin 2 at the scale it had previously identified; and (5) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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.
Investors who purchased or otherwise acquired shares of Origin Materials (ORGN) should contact the Firm prior to the October 24, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.