Origin Materials, Inc.
A securities class action has been filed in the USDC – E.D.CA. against Origin Materials, Inc. (ORGN) (“Origin” or the “Company”) on behalf of a class consisting of all persons and entities that purchased or otherwise acquired Origin securities between February 23, 2023 through August 9, 2023, both dates inclusive (the “Class Period”).
Origin is a sustainable materials company founded in 2008 by chemical engineering students at the University of California, Davis. The Company purports to have developed a platform to convert the carbon found in biomass into carbon negative materials that can replace the petroleum-based substances typically used in various end products. One of the sustainable materials in Origin’s platform is chloromethylfurfural (“CMF”), a building block chemical that can be converted into, among other products, (1) paraxylene (“PX”), a product that can replace non-sustainable chemicals in existing supply chains to produce polyethylene terephthalate (“PET”); and (2) furandicarboxylic acid (“FDCA”), which can be converted into polyethylene furanoate (“PEF”). According to the Company, these chemicals can be used in a variety of applications. PET’s applications include packaging, textiles, car parts, carpeting, toys, and construction materials, while FDCA and PEF’s include surfactants, epoxy resins, and packaging, with PEF having the potential to compete with glass and aluminum.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants misled investors by failing to disclose that:
- Origin would not be able to meet its previously announced timeline for the construction of the Origin 2 plant;
- demand for PX had dropped such that it would not be the production focus of Origin 2;
- Origin could not construct Origin 2 at its previously disclosed cost;
- Origin could not construct Origin 2 at the scale it had previously identified; and
- as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and lacked a reasonable basis, thereby harming investors.
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