Origin Materials $9M Securities Class Action Settlement

Investors who purchased or otherwise acquired publicly traded securities of Origin Materials Inc. on the open market of a U.S. stock exchange between March 7, 2023, and Aug. 9, 2023, may be eligible to claim a cash payment from a class action settlement.

Origin Materials agreed to pay $9 million to settle a securities class action lawsuit alleging it made materially false and misleading statements and failed to disclose material facts and risks. The lawsuit alleged Origin misrepresented the company's schedule to begin construction of and produce products from the Origin 2 plant and that Origin later disclosed the plant faced significant delays.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Origin Materials Inc. publicly traded common stock or public warrants on the open market of a U.S. stock exchange between March 7, 2023, and Aug. 9, 2023, inclusive, and were damaged as a result.

Additional details

• Both individuals and entities can be class members.
• Each separate legal entity or separately managed account must submit a separate claim.
• Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
• Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
• Participants in and beneficiaries of any employee retirement or benefit plan covered by ERISA should not include Origin Materials securities transactions made through an employee plan on an individual claim form. Plan trustees must submit claims for employee plan transactions.

How much can class members get?

The total settlement fund is $9,000,000. The amount each class member receives depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each investor purchase, sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per allegedly damaged share is approximately $0.30 before deductions for taxes, notice and administration costs, and attorneys' fees and expenses.
• If the court approves attorneys' fees and expenses, the estimated average recovery is approximately $0.22 per allegedly damaged share.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing. The settlement administrator will calculate them using the court-approved plan of allocation, including Table A (average closing prices for common stock) and Table B (average closing prices for public warrants) in the settlement notice (tables are on Pages 14-16 of the settlement notice).
• The plan of allocation applies different formulas depending on when class members held or sold securities.
• Common stock claims:
• For shares purchased and sold before Aug. 10, 2023, the recognized loss is $0.
• For shares sold between Aug. 10, 2023, and Nov. 7, 2023, the recognized loss is the least of $2.83 per share, purchase price minus sale price or purchase price minus the average closing price between Aug. 10, 2023, and the date of sale as listed in Table A.
• For shares held as of the close of trading on Nov. 7, 2023, the recognized loss is the lesser of $2.83 per share or purchase price minus $1.25 per share.

• Public warrant claims:
• For public warrants purchased and sold before Aug. 10, 2023, the recognized loss is $0.
• For public warrants sold between Aug. 10, 2023, and Nov. 7, 2023, the recognized loss is the lesser of $0.58 per warrant, purchase price minus sale price or purchase price minus the average closing price between Aug. 10, 2023, and the date of sale as listed in Table B.
• For public warrants held as of the close of trading on Nov. 7, 2023, the recognized loss is the lesser of $0.58 per warrant or purchase price minus $0.09 per warrant.

• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is May 4, 2026.

Settlement administrator's mailing address: Origin Materials Inc. Securities Litigation, c/o Strategic Claims Services, 600 N. Jackson St., Ste 205, P.O. Box 230, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares or warrants purchased, acquired or sold
• Total purchase, sale or acquisition price

Class members must also provide documentation to support their transactions in Origin Materials securities. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker, financial advisor or financial institution containing the transactional information found in a confirmation slip

Payout options

• Physical check

$9 million settlement fund

The $9,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $2,250,000
• Attorneys' expenses: Up to $250,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: May 4, 2026
• Deadline to file a claim: May 4, 2026
• Final approval hearing: June 8, 2026

When is the Origin Materials securities class action settlement payout date?

The settlement administrator will issue payments after it completes processing and the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The lawsuit alleged Origin Materials and certain executives made false and misleading statements regarding the timeline for constructing and producing products from the Origin 2 plant. The plaintiffs claimed these statements inflated Origin's securities price and caused investor losses when corrective information entered the market.

Origin denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form