NEW YORK, December 23, 2021 (GLOBE NEWSWIRE) – The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired the common shares of Berkeley Lights, Inc. (âBerkeley Lightsâ or the âCompanyâ) (NASDAQ: BLI) from July 17, 2020 to September 14, 2021 inclusive (the âRecourse Periodâ). Investors have until February 7, 2022 to ask the court to be named lead plaintiffs in the lawsuit.
Berkeley Lights is a biotechnology company that owns and operates a proprietary cellular data analysis and processing platform for use in the development and commercialization of biotherapeutics and other cell-based products, with a focus on the antibody therapy, cell therapy and synthetic biology markets.
On September 15, 2021, the research analyst firm Capital of Scorpio released 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 27 times sales. Target Price: $ 0, âwhich criticized Berkeley Lights ‘technology and questioned the sustainability of Berkeley Lights’ most important business relationships and its business growth plan. Although Capital of Scorpio stated that it was Berkeley Lights, the information in the Capital of Scorpio The report was allegedly based on in-depth proprietary research and analysis, including 24 research interviews with former Berkeley Lights employees, industry scientists, and end users from 14 of Berkeley Lights’ largest customers. Among other findings, the report refers to a “trail of customers who claim to have been ‘cheated’, misled, or over-promised into purchasing a $ 2 million lemon” and concluded that ” the reality is so far removed from the awe-inspiring BLI hype that we believe its product claims and practices may constitute outright fraud. Following this news, Berkeley Lights’ share price fell $ 6.14 per share, or approximately 18.74%, from $ 32.76 per share to close at $ 26.62 per share on the 15th. September 2021.
The lawsuit alleges throughout the period of the action, the defendants made false and / or misleading statements and / or failed to disclose that: (i) Berkeley Lights’ flagship instrument, the Beacon, suffered from numerous faults design and manufacturing, including failures, high error rates, data integrity issues and other issues, limiting the ability of biotech companies and research institutes to consistently use machines on a large scale ; (ii) Berkeley Lights had received numerous customer complaints regarding the durability and efficiency of Berkeley Lights automation systems, including design and manufacturing complaints; (iii) the actual market for Berkeley Lights products and services was only a fraction of the $ 23 billion that investors represented due, among other things, to the relatively high cost of Berkeley Lights instruments and consumables and its inability to provide the sustained performance necessary to justify these high costs; and (iv) accordingly, the Defendants’ representations to investors during the Class Period regarding the business, operations and financial results of Berkeley Lights were materially false and misleading.
If you have purchased or acquired securities of Berkeley Lights, have any information or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP by email to email@example.com, or by completing this contact form, to discuss your rights or interests in these matters at no cost to you.
Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.