Bernstein Liebhard LLP Announces That Only One Week Remains To File A Lead Plaintiff Motion In A Class Action Pending Against Solazyme, Inc.

NEW YORK, Aug. 17, 2015

Solazyme is a San Francisco-based bio-products company that produces sustainable oils from microalgae.  The Company uses an industrial fermentation process to transform plant-based sugars into triglyceride oils, which are used in a wide range of products.

On March 25, 2014, Solazyme filed a Registration Statement with the SEC for the Offerings.  On March 27, 2014, Solazyme filed a Prospectus in connection with the offering of $149.5 million in convertible notes paying 5% interest and scheduled to mature in 2019 (the "Notes").  On the same day, Solazyme filed a Prospectus for the offering of 5.75 million shares of stock at $11 per share for aggregate gross proceeds of approximately $63.25 million.

The Complaint alleges that Defendants failed to disclose that the Company's Brazilian Moema Facility was experiencing construction delays due to insufficient access to electricity and steam utility services, and that these challenges would prohibit the facility from scaling its capacity production as projected.  As a result of these false and misleading statements and/or omissions, Solazyme securities traded at artificially inflated prices during the Class Period.

On November 5, 2014, Solazyme acknowledged significant construction delays at the Moema Facility and revealed for the first time that it would "narrow [its] production focus to smaller volumes of higher value products at . . . Moema" and would be "prioritizing cash management and product margin over a rapid capacity ramp." 

On this news, the price of the Company's stock declined $4.35 per share, over 58%, on November 6, 2014, and the market price of Solazyme's Notes declined by $235 per Note, over 30%, on November 7, 2014, the next session in which the Notes traded.

Plaintiffs seek to recover damages on behalf of all Class members who purchased Solazyme notes or shares during the Class Period.  If you purchased Solazyme securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff.  In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 24, 2015.