Zymergen $125 Million Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

July 27, 2026 3:37 PM

Updated

July 27, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Zymergen Inc. common stock between April 21, 2021, and Aug. 3, 2021, inclusive, pursuant or traceable to the registration statement for the company's April 2021 initial public offering.

Additional details

Both individuals and entities can be class members.
Investment vehicles, such as mutual funds, exchange-traded funds, hedge funds, retirement accounts and employee benefit plans, can be class members.
The settlement includes shareholders who held stock directly and those who held through a broker or other nominee.
Joint claimants must each sign the claim form.
Executors and administrators may sign the claim form on behalf of others and must state the capacity in which they are acting.

How much can class members get?

The total settlement fund is $125,000,000. The amount each class member receives depends on several factors:

The number of valid claims submitted
The number of shares purchased or acquired traceable to the offering
The prices paid and the timing of each purchase and sale
The total recognized claims 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 is approximately $6.21 per share before deductions. After estimated attorneys' fees and expenses of $2.01 per share, the estimated net average distribution is approximately $4.20 per share before taxes and administration costs.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate a recognized loss for each purchase or acquisition traceable to the offering based on the $31 offering price, the $8.25 closing price on Aug. 4, 2021, the purchase and sale prices and the timing of each sale.

For shares sold before Aug. 4, 2021, the recognized loss is the lesser of the purchase price minus the sale price or $31 minus the sale price.
For shares sold on or after Aug. 4, 2021, or still held, the recognized loss is the least of the purchase price minus the sale price, $31 minus the sale price, the purchase price minus $8.25 or $22.75.
For shares purchased on or after Aug. 4, 2021, the recognized loss is $0.

The settlement administrator will match purchases and sales on a first-in, first-out basis.
The settlement administrator will set any recognized loss that calculates to a negative number or zero to $0.
For claimants who had an overall market gain on their Zymergen transactions, the settlement administrator will set their claim to $0. For claimants whose overall market loss is smaller than their recognized claim, the settlement administrator will limit their claim to the market loss.
If total recognized claims 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 Zymergen securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Oct. 11, 2026.

Settlement administrator's mailing address: Zymergen Securities Litigation, Claims Administrator, c/o Verita Global, P.O. Box 301135, Los Angeles, CA 90030-1135

Proof or documentation required to submit a claim

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

Number of shares held as of the close of trading on April 20, 2021
Trade dates for purchases and sales from April 21, 2021, through Aug. 4, 2021
Number of shares purchased, acquired or sold
Total purchase, acquisition or sale price
Number of shares held as of the close of trading on Aug. 4, 2021

Class members must also provide documentation to support their holdings and transactions in Zymergen common stock. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Other documentation of holdings and transactions in Zymergen common stock

Payout options

Physical check

$125 million settlement fund

The $125,000,000 settlement fund includes:

Notice and claims administration costs: To be determined
Attorneys' fees: Up to $37,500,000
Attorneys' expenses: Up to $3,000,000
Service awards to plaintiffs: Up to $40,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Deadline to file a claim: Oct. 11, 2026
Settlement hearing: Oct. 13, 2026

When is the Zymergen securities class action settlement payout date?

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

Why did this class action settlement happen?

The class action lawsuit alleged the registration statement and prospectus for Zymergen's April 2021 initial public offering contained untrue statements of material fact and omitted material facts. The plaintiff claimed investors suffered losses when the company later revealed material adverse facts.

The settling defendants denied all allegations of fault, liability and wrongdoing but agreed to settle to eliminate the uncertainty, risk, costs and burdens of continued litigation. Zymergen filed for Chapter 11 bankruptcy protection in October 2023 and is not a party to the settlement.