RADNOR, PA / ACCESSWIRE / December 11, 2021 / The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed against Berkeley Lights, Inc. ("Berkeley") (NASDAQ:BLI)
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LEAD PLAINTIFF DEADLINE:February 7, 2022
CLASS PERIOD: July 17, 2020 through September 14, 2021
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
James Maro, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at [email protected]
BERKELEY'S ALLEGED MISCONDUCT
Berkeley Lights is a biotechnology company that owns and operates a proprietary platform for analyzing and processing cell data for use in the development and commercialization of biotherapeutics and other cell-based products, focusing on the markets of antibody therapeutics, cell therapy and synthetic biology. The centerpiece of the Berkeley Lights platform is the company's advanced automation system, the Beacon. The Beacon is a fully automated, high throughput system designed to allow detailed cell analysis at scale. The Beacon is used by Berkeley Lights' customers for tasks such as antibody discovery and cell line development.
The Class Period commences on July 17, 2020, when Berkeley Lights filed a prospectus on a Form 424B4, which incorporated and formed part of the registration statement for the initial public offering. The registration statement highlighted the purported superiority of the Berkeley Lights platform compared to existing cell analyzing instruments, stating, for example, that the platform provides "the most advanced environment for rapid functional characterization of single cells at scale." The registration statement also highlighted Berkeley Lights' purported operational and financial growth. On November 19, 2020, Berkeley Lights filed a prospectus on a Form 424B4, which incorporated and formed part of the registration statement for a secondary offering.
The truth regarding the Beacon emerged on September 15, 2021, when research analyst firm Scorpion Capital issued an 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," which criticized Berkeley Lights' technology and questioned the durability of Berkeley Lights' most important business relationships and its business growth plan. The report concluded that only a relatively small number of biotech companies could afford the relatively expensive machines produced by Berkeley Lights. In addition, the report found that negative customer experiences had further crimped Berkeley Lights' growth potential. Following this news, the price of Berkeley Lights' common stock fell nearly 30% over two trading days to close at $23.53 on September 16, 2021.
The complaint alleges that in the registration statements and throughout the Class Period, the defendants failed to disclose the following adverse facts pertaining to Berkeley Lights' business, operations and financial condition: (1) 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; (2) Berkeley Lights had received numerous customer complaints regarding the durability and effectiveness of the company's automation systems, including complaints related to the design and manufacturing; (3) the actual market for Berkeley Lights' products and services was a fraction of the $23 billion represented to investors because of, inter alia, the relatively high cost of the company's instruments and consumables and inability to provide the sustained performance necessary to justify these high costs; and (4) as a result of the above, the defendants' statements during the Class Period regarding Berkeley Lights' business, operations and financial results were materially false and misleading.
WHAT CAN I DO?
Berkeley investors may, no later than February 7, 2022, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLPor other counsel, or may choose to do nothing and remain an absent class member Kessler Topaz Meltzer & Check, LLP encourages Berkeley investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. At the end of the day, we have succeeded if the bad guys pay up, and if you recover your assets. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro, Jr., Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)
SOURCE: Kessler Topaz Meltzer & Check, LLP