Danimer Scientific Gets SPAC Misrepresentation Suit Tossed

Danimer Scientific got a judge’s nod to toss allegations that the company and its officers knowingly misled investors in disclosures about a 2020 SPAC deal, Bloomberg reports.

The investors who sued the bioplastics company in 2021 were able to show that Danimer and its executives made misleading statements, but failed to adequately allege that they did so with any fraudulent motive or intent, Judge Hector Gonzalez said in an order in US District Court for the Eastern District of New York.

Live Oak Acquisition shareholders approved the deal in December 2020. The transaction implied an equity valuation for Danimer of approximately $890 million at closing. Read more.

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