Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Aug. 28, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Origin Materials, Inc. (“Origin Materials” or the “Company”) (NASDAQ: ORGN) investors that a lawsuit filed on behalf of investors that purchased Origin securities between February 23, 2023 and August 9, 2023, both dates inclusive (the “Class Period”).
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Origin Materials, founded in 2008 by students at the University of California, Davis, is a sustainable materials company that claims to have developed a way to convert biomass carbon into carbon-negative materials to replace petroleum-based substances in various products. One of these materials is chloromethylfurfural (CMF), which can be transformed into products like paraxylene (PX) and furandicarboxylic acid (FDCA). These chemicals have applications in industries such as packaging, textiles, car parts, and more.
However, on August 9, 2023, Origin Materials announced a significant delay in the construction timeline of its Origin 2 commercial plant. The company also shifted its focus from producing PX to concentrating on FDCA due to decreased demand for PX. The delay was attributed to a high-cost environment for capital projects, and the construction costs were expected to be higher with lower capacity than initially planned. As a result of this news, Origin's stock price plummeted by 66.5% to $1.45 per share on August 10, 2023.
The complaint against the company alleges that the defendants made false or misleading statements and failed to disclose several crucial facts: (1) Origin Materials couldn't meet its original timeline for constructing the Origin 2 plant; (2) demand for PX had decreased, causing a shift in production focus; (3) the cost of constructing Origin 2 was higher than disclosed; (4) the scale of Origin 2's construction was different from what was initially stated; and (5) as a result of these factors, the positive statements made by defendants about the company's business and prospects were misleading and lacked a reasonable basis.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
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