The Truth Behind Ginkgo’s Inflated Revenues — and How Investors Could Still Win

Court: N.D. California

Case: 4:21-cv-08943

Ginkgo Bioworks DNA has agreed to a $17.75 million settlement with investors who said executives misled them during its 2021 SPAC merger with Soaring Eagle Acquisition Corp.

This agreement closes a chapter marked by hype about synthetic biology, lofty promises about revenue, and serious doubts about executive transparency.

How Leadership Lapses Fueled the Crisis

Executives billed Ginkgo as the “platform company for cell programming,” claiming its business model was both unique and scalable. CEO Jason Kelly assured that Ginkgo’s growth trajectory was clear, while co-founder Reshma Shetty promoted its partnerships as proof of demand.

But, it was later revealed that the company’s registration and proxy statements misrepresented key facts, and executives “made materially false and misleading statements and omissions concerning Ginkgo’s business, operations, and prospects.”

Investors Call Out the Storyline

Shares slid sharply and investors questioned the company’s claims. Soon they filed a lawsuit against the company arguing that “that Ginkgo’s reported growth was built on undisclosed related-party transactions.”

A Deal to Compensate Shareholders

Now, after nearly three years of litigation, Ginkgo has agreed to a $17.75 million settlement. While the company and executives denied wrongdoing, the deal aims to provide compensation to damaged investors.

If you bought Ginkgo securities, even if the original deadline has passed, late claims are still being accepted. You can check eligibility and file a claim here.