Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against TerraVia Holdings, Inc.
Oklahoma City, OK (November 17, 2016) – On November 16, 2016, a securities class action lawsuit was filed in the United States District Court for the Northern District of California against TerraVia Holdings, Inc. (NASDAQ: TVIA). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is August 8, 2016 through November 7, 2016. More specifically, this litigation was filed because the Company failed to disclose that: (1) TerraVia’s products caused gastrointestinal distress, such as nausea and vomiting; and (2) as a result, the Company’s statements about its business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
On November 7, 2016, Bloomberg broadcasted a news report, "Soylent Thinks It Found What Was Making People Sick: Algae." The article described how Soylent, Rosa Foods, Inc.'s meal replacement drink, includes an algal flour ingredient provided by TerraVia. This ingredient has caused Soylent consumers to become sick. Rosa Foods stopped selling its powder mix and recalled its protein bars in October 2016.
On November 7, 2016, Bloomberg reported that the Company sent a letter to a distributor in July warning that TerraVia had received reports showing that algal protein can cause gastrointestinal distress. On this news, the Company’s shares fell $0.15 per share to close at $1.70 per share on November 7, 2016.
Plaintiff seeks to recover damages on behalf of all TerraVia Holdings, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, January 17, 2017 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Thu, November 17, 2016
by Robin Hester filed under