This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Metabolix is a bioscience company engaged in research and development in plastics, industrial chemicals and crops industries. The Company’s core area of business is bioplastics. The Complaint alleges that during the Class Period, Metabolix and certain officers of the Company, made materially false and misleading statements and omissions regarding Metabolix's business and operations. Specifically, the Complaint alleges that defendants materially misrepresented and/or failed to disclose that Telles LLC ("Telles"), the Company’s joint venture with Archer-Daniels-Midland (“ADM”), would not meet its commercial phase benchmark by mid-2010, or even in 2011, which would allow the Metabolix to receive royalty payments and payments from services from Telles; and that Metabolix's polyhydroxyalkanoate bioplastics product under the brand name "Mirel" was not a commercially viable product. Accordingly, it is alleged that defendants lacked a reasonable basis for their positive statements about the Company and its prospects.
On January 12, 2012, Metabolix announced that ADM had terminated the Telles joint venture because uncertainty about projected capital and production costs, and the rate of market adoption, caused too much uncertainty about projected financial returns for ADM. ADM further disclosed that the Telles joint venture was neither delivering sufficient results, nor was expected to deliver sufficient results in a reasonable timeframe. Upon this news, Metabolix stock declined approximately 57%, to reach a multi-year low of $2.54 per share.