Berkeley Lights, Inc.

Berkeley Lights, Inc.

Ticker: BLI

Class Period Start: 07/01/2020

Class Period End: 09/14/2021

Registration Deadline: 02/07/2022

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,” which criticized Berkeley Lights’ technology and questioned the durability of Berkeley Lights’ most important business relationships and its business growth plan. Although Scorpion Capital stated it was short Berkeley Lights, 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, damaging investors.

A securities class action has been filed against Berkeley Lights on behalf of shareholders that purchased Berkeley Lights shares between July 1, 2020 and September 14, 2021. This case has been filed in the U.S. District Court for the Northern District of California.

According to the Complaint, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) 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; (3) 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 (4) as a result, defendants’ statements to investors during the Class Period regarding Berkeley Lights’ business, operations, and financial results were materially false and misleading. When the true details entered the market, the lawsuit claims that investors suffered damages.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

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