The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Berkeley Lights, Inc. (BLI) Investors
Jan 20, 2022 11:09 AM ET
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The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Berkeley Lights common stock between July 17, 2020 and September 14, 2021, inclusive (the "Class Period"). Berkeley Lights investors have until February 7, 2022 to file a lead plaintiff motion.
On September 15, 2021, Scorpion Capital published a research report, alleging, among other things, that Berkeley Lights' customers "allege they were 'tricked,' misled, or over-promised into buying a $2 million lemon" and that the Company's "product claims and practices may constitute outright fraud." Citing interviews with former employees and executives, the report stated that Berkeley Lights is "a chaotic, wayward company that never found a viable product, value proposition, or market – and corroborate the scathing feedback from customers." Other problems mentioned in the Scorpion Capital report included the fact that the Company's instruments were not robust enough for commercial use and frequently broke down, were prone to contamination, suffered from throughput limitations, were plagued by data integrity issues, and experienced repeated software problems.
On this news, Berkeley Lights' stock fell $9.23, or 28%, over two trading days to close at $23.53 per share on September 16, 2021, thereby injuring investors.
The complaint filed 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 failed to disclose to investors: (1) that 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) that Berkeley Lights had received numerous customer complaints regarding the durability and effectiveness of the Company's automation systems, including complaints related to the design and manufacturing detailed above, and described herein; (3) that the actual market for Berkeley Lights' products and services was a fraction of the $23 billion represented to investors because of, inter alia, the relatively high cost of the Company's instruments and consumables and inability to provide the sustained performance necessary to justify these high costs; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Berkeley Lights common stock during the Class Period, you may move the Court no later than February 7, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Berkeley Lights common stock, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
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