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Ginkgo Bioworks Holdings, Inc.


A securities class action has been filed against Ginkgo Bioworks Holdings, Inc. (DNA) on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired the publicly traded securities of Ginkgo between May 11, 2021 through October 5, 2021.  This case has been filed in the USDC – N.D.CA.

Ginkgo develops platform for cell programming. Its platform is used to program cells to enable biological production of products, such as novel therapeutics, food ingredients, and chemicals derived from petroleum. Ginkgo serves various end markets, including specialty chemicals, agriculture, food, consumer products, and pharmaceuticals.

On October 6, 2021, analyst Scorpion Capital published an investigative report concluding “Ginkgo is a house of cards – in our opinion, one of the most brazen frauds of the last 20 years.” The report claimed that Ginkgo’s business model is a related-party model whereby essentially 100% of the company’s deferred revenue are derived from related-party “customers” it created, funded, controls or influences via its ownership position and board seats. The report also alleged that Ginkgo has engaged in a brazen effort to misclassify and misreport related-party revenue and deceive investors with phony accounting and at least half of Ginkgo’s reported foundry revenue is phantom, non-cash and “pure accounting hocus-pocus.”

Following this news, Ginkgo’s stock price fell $1.39, or over 11%, to close at $10.59 per share on October 6, 2021.

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Securities