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ORGN.US

Origin Materials (ORGN) Origin 2 Misleading Case

E.D. California
Court
2:23-cv-01816
Case number
23 Feb 2023
Class period Start
09 Aug 2023
Class period End
  • Origin Materials announced a delay for Origin 2 constructions and revealed that it would cost more and yield less capacity than previously announced.
  • $ORGN fell 66%, losing over $412 million of market cap.
  • Investors suspect Origin of misleading about the timeline for the construction of the Origin 2 plant.
On August 9, 2023, Origin announced that it was changing the product slate at its Origin 2 commercial plant and delay the timeline for construction on the Origin 2 plant, from its initial expectation for a mid-2025 completion to a two-phase completion, expected to finish in 2028.

The Company also revealed that the construction at Origin 2 would cost more and yield less capacity than previously announced.

On this news, $ORGN declined over 66%, losing over $412 million of its market capitalization.

Taking all management's representations into account, Investors have reasons to suspect Origin Materials and its executives of misleading about the timeline and scale of Origin 2 construction and failing to disclose that demand for paraxylene ("PX") had dropped such that it would not be the production focus of Origin 2.
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
10 August 2023
Filing date
25 August 2023
Lead Plaintiff Deadline
24 August 2023
Judge
Hon. William B. Shubb
Collecting participants…
Created by Stan Vick, Scout

Origin Materials Inc

Origin Materials, Inc., together with its subsidiaries, operates as a carbon-negative materials company. The company develops proprietary platform technology to convert biomass or plant-based carbo...

    Ticker
    ORGN.US
    ISIN
    US68622D1063
    CIK
    1802457
    Sector
    Basic Materials
    Industry
    Chemicals
    Country
    USA
    Address
    930 Riverside Parkway, West Sacramento, CA, United States, 95605