Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Berkeley Lights, Inc. (BLI)
NEW YORK, Dec. 09, 2021 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Berkeley Lights, Inc. (“Berkeley Lights” or the “Company”) (NASDAQ: BLI) in the United States District Court for the Northern District of California on behalf of investors who purchased or acquired the common stock of Berkeley between July 17, 2020 and September 14, 2021, inclusive (the “Class Period”).
According to the Complaint, Defendants made false and misleading statements and failed to disclose that: (i) 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; (ii) Berkeley Lights had received numerous customer complaints regarding the durability and effectiveness of Berkeley Lights automation systems, including complaints related to the design and manufacturing; and (iii) the actual market for Berkeley Lights products and services was a fraction of the $23 billion represented to investors because of, among other things, the relatively high cost of Berkeley Lights instruments and consumables and inability to provide the sustained performance necessary to justify these high costs.
On September 15, 2021, research analyst firm Scorpion Capital issued 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 27X Sales. Target Price: $0”. This report criticized Berkeley Lights’ technology and questioned the durability of Berkeley Lights’ most important business relationships and its business growth plan. Although Scorpion Capital stated it was short Berkeley Lights, the information contained in its report was purportedly based on extensive proprietary research and analysis, including 24 research interviews with former Berkeley Lights employees, industry scientists, and end-users across 14 of Berkeley Lights’ largest customers. Among other findings, the report detailed a trail of customers who allege they were tricked, misled, or over-promised into buying a $2 million lemon. On this news, the price of Berkeley Lights’ common stock fell by nearly 30% over two trading days, damaging investors.
Investors who purchased or otherwise acquired shares of Berkeley Lights during the Class Period should contact the Firm prior to the February 7, 2022 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
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