Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, reminds investors that a securities class action lawsuit has been filed against Berkeley Lights, Inc. (“Berkeley Lights” or the “Company”) (NASDAQ: BLI) and certain other defendants,. If you purchased shares of Berkeley Lights between July 17, 2020 and September 14, 2021, you are encouraged to contact Joe Pettigrew for additional information at (844) 818-6982, or at email@example.com. The lead plaintiff deadline is February 7, 2022.
Berkeley Lights is a biotechnology company. Its flagship instrument is the Beacon, a $2 million lab instrument that the Company touts as “a better, more advanced way to process and analyze cells.”
According to the filed complaint, Berkeley Lights and the other defendants made false and misleading statements and failed to disclose that: (i) Berkeley Lights’ flagship instrument, the Beacon, suffered from numerous design and manufacturing defects including breakdowns, high error rates, data integrity issues and other problems, limiting the ability of biotechnology companies and research institutions to consistently use the machines at scale; (ii) Berkeley Lights had received numerous customer complaints regarding the durability and effectiveness of Berkeley Lights’ automation systems, including complaints related to the design and manufacturing; (iii) the actual market for Berkeley Lights’ products and services was a fraction of the $23 billion represented to investors because of, among other things, the relatively high cost of Berkeley Lights’ instruments and consumables and inability to provide the sustained performance necessary to justify these high costs; and (iv) as a result, defendants’ statements to investors during the Class Period regarding Berkeley Lights’ business, operations and financial results were materially false and misleading.
On September 15, 2021, research analyst firm Scorpion Capital issued a scathing investigative report, titled “Fleecing Customers And IPO Bagholders With A $2 Million Black Box That’s A Clunker, While Insiders and Silicon Valley Bigwigs Race To Dump Stock. Just Another VC Pump at 27X Sales. Target Price: $0.” The report criticized Berkeley Lights’ technology and questioned the durability of Berkeley Lights’ most important business relationships and its business growth plan. The information contained in the Scorpion Capital report was purportedly based on extensive proprietary research and analysis, including 24 research interviews with former Berkeley Lights employees, industry scientists, and end users across 14 of Berkeley Lights’ largest customers. Among other findings, the report detailed a “trail of customers who allege they were ‘tricked,’ misled, or over-promised into buying a $2 million lemon” and concluded that the “reality is so far from BLI’s grandiose hype that we believe its product claims and practices may constitute outright fraud.”
On this news, the price of Berkeley Lights common stock fell by nearly 30% over two trading days.
Lead Plaintiff Deadline
The Lead Plaintiff deadline in this action is February 7, 2021. Any member of the proposed Class may seek to serve as Lead Plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed Class.
What You Can Do
If you purchased Berkeley Lights stock between July 17, 2020 and September 14, 2021, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or firstname.lastname@example.org.
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, Virginia, and Ohio.
This may be considered Attorney Advertising.
Scott+Scott Attorneys at Law LLP
230 Park Avenue, 17th Floor, New York, NY 10169