Once a $23B Darling, Now a Penny Stock — What’s Next for Ginkgo Bioworks?

Court: N.D. California

Case: 4:21-cv-08943

If you’ve been following Ginkgo Bioworks ( DNA ), you probably remember the short-seller report that shook the company back in 2021. If not, here’s a quick recap of what happened and some recent updates.

In 2021, Ginkgo Bioworks went public via SPAC, raising $1.6B and attracting major institutional investors.

However, in October 2021, Scorpion Capital released a report labeling Ginkgo a "colossal scam", alleging that most of its revenue came from related-party transactions and that many of its partnerships were overstated or misleading.

When this news came out, Ginkgo’s stock fell 12%, and the DOJ launched an investigation.

A month later, shareholders filed a lawsuit, accusing Ginkgo of inflating its revenue and hiding key risks.

As you might know, Ginkgo has already agreed to settle, paying up to $17.75M to investors. And, even though the deadline has passed, they’re accepting late claims. You can check the details and file for payment here.

Despite this settlement, Ginkgo's stock has continued its downward spiral, having lost over 97% of its peak value. Once worth nearly $30B, the company’s market cap has now dropped to around $825M.

It remains to be seen if they can manage to improve its results in the coming future.