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

24 Aug 2023

Lead Plaintiff motion deadline

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.

Case Status

Motion to dismiss

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

Origin Materials (ORGN) Origin 2 Misleading Case

Collecting participants…