Understanding the Class Action Against Origin Materials: A Comprehensive Guide

​If you suffered losses in Origin Materials stock, contact Origin Materials stock loss lawyer Timothy L. Miles today

Introduction to Class Action Lawsuits

Before diving into the specifics of the class action against Origin Materials, it is important to understand what a class action lawsuit is and how it works. A class action lawsuit is a legal action brought by a group of people who have suffered similar harm from the actions of a company. By consolidating the claims of many individuals into one lawsuit, class actions can be more efficient and cost-effective than individual lawsuits.

Class actions can be brought for a variety of reasons, including consumer protection, product liability, and securities fraud. In the case of Origin Materials, the class action was brought as a securities fraud lawsuit.

What is Origin Materials?

Origin Materials is a chemical company that specializes in converting sustainable feedstocks into chemicals and plastics. The company was founded in 2008 and has been at the forefront of the sustainable materials movement.

Overview of the Class Action Against Origin Materials

The Origin Materials class action lawsuit seeks to represent purchasers or acquirers of Origin Materials, Inc. (NASDAQ: ORGN) securities between February 23, 2023 and August 9, 2023, inclusive (the “Class Period”).  Captioned Soto v. Origin Materials, Inc., No. 23-cv-01816 (E.D. Cal.), the Origin Materials class action lawsuit charges Origin Materials and certain of its top officers with violations of the Securities Exchange Act of 1934.
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If you suffered losses in Origin Materials stock and wish to serve as lead plaintiff in the class action against Origin Materials, please provide your information below. You can also ​contact Origin Materials Stock Loss Lawyer Timothy L. Miles by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form. Lead plaintiff motions for the Origin Materials lawsuit must be filed with the court no later than October 24, 2023.

ALLEGATIONS IN THE class action against Origin Materials

Origin Materials is a sustainable materials company that purports to have developed a platform to convert carbon found in biomass into carbon negative materials that can replace the petroleum-based substances typically used in various end products.  On February 17, 2021, Origin Materials announced that it had entered into a merger agreement with Artius Acquisition Inc., a special purpose acquisition company (commonly known as a blank-check company or SPAC).  The companies announced that as a consequence of the merger, Origin Materials would begin trading on the NASDAQ.

The Origin Materials class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Origin Materials would not be able to meet its previously announced timeline for the construction of its Origin 2 commercial plant; (ii) demand for paraxylene, a product that can replace non-sustainable chemicals in existing supply chains, had dropped such that it would not be the production focus of the Origin 2 plant; (iii) Origin Materials could not construct the Origin 2 plant at its previously disclosed cost; and (iv) Origin Materials could not construct the Origin 2 plant at the scale it had previously identified.

​On August 9, 2023, Origin Materials announced it was significantly delaying the timeline for construction on its Origin 2 commercial plan and changing the product slate at Origin 2.  Origin Materials disclosed that it “now expects Origin 2 to be completed in two phases, with Phase 1 estimated to be completed in late 2026 to 2027, and Phase 2 estimated to be completed in 2028, compared with our initial expectation for a mid-2025 completion.”  Origin Materials blamed the delay on the “high-cost environment” for capital projects.  Origin Materials further revealed that the construction would cost more and yield less capacity than previously announced.  On this news, the price of Origin Materials stock declined more than 66%, damaging investors. 

THE LEAD PLAINTIFF PROCESS IN THE class action against origin materials

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Origin Materials stock to seek appointment as lead plaintiff in the class action against Origin Materials. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. 
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​A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit.  An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Origin Materials stock and have further questions, contact Origin Materials stock loss Lawyer Timothy L. Miles today who will fight to recover your damages in a Origin Materials stock lawsuit if you suffered losses in Origin Materials stock.

WILL THE LEAD PLAINTIFFS GET MORE MONEY THAN CLASS MEMBERS IF THE ORIGIN MATERIALS CLASS ACTION LAWSUIT SETTLES?

​​No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the class action against Origin Materials. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class.  However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff which directly relates to the representation of the class in the class action against Origin Materials on behalf of investors who suffered losses in Origin Materials stock. 

CAN I BE LEAD PLAINTIFF IN THE ORIGIN MATERIALS CLASS ACTION LAWSUIT IF I AM LEAD PLAINTIFF IN ANOTHER CASE?

​​Yes, unless you have been a lead plaintiff in more than five securities class actions during any three-year period which is expressly prohibited by the securities laws. Otherwise, if you suffered losses in Origin Materials stock, you may move to be appointed lead plaintiff in the class action against Origin Materials.

HOW WAS THE CLASS PERIOD DETERMINED IN THE ORIGIN MATERIALS CLASS ACTION LAWSUIT?

In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives.  The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading.  The class period ends when the truth is revealed to the investing public through a corrective disclosure.  
 
In order to be a part of the class in the class action against Origin Materials, you must have suffered losses in Origin Materials stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the class action against Origin Materials. 

IF I SUFFERED LOSSES IN ORIGIN MATERIALS STOCK, HOW MUCH CAN I GET OUT OF THE ORIGIN MATERIALS CLASS ACTION LAWSUIT?

​​​In a securities fraud class action lawsuit, the plaintiff’s damages are typically calculated as out-of-pocket losses. These losses are expressed as the difference between the price at which the stock was sold and the price at which the stock would have been sold absent any artificial inflation caused by the defendant’s alleged misrepresentations or omissions which is why you suffered losses in Origin Materials stock. Contact an Origin Materials stock loss lawyer who can explain your losses in greater detail if you suffered losses in Origin Materials stock. 

IF I SUFFERED LOSSES IN SUFFERED LOSSES IN ORIGIN MATERIALS STOCK, WHEN CAN I EXPECT TO RECEIVE MY PAYMENT IF THE ORIGIN MATERIALS CLASS ACTION LAWSUIT SETTLES?

​If there is a settlement in the Origin Materials ​class action lawsuit, you should receive a court-ordered Notice through the mail which will provide a date when the court will hold a final hearing to decide if it will approve the settlement. If your address changed, you may also find lawsuits through sites such as Consumer Action and ClassAction.org along with instructions on how to submit a claim. The Notice will instruct you what you need to do to file a claim. In some class action settlements, you are automatically submitted and need to do nothing further. However, in others, you may be required to submit more information to proceed such as documentation proving your purchase, such as a receipt or brokerage slip or other evidence that you bought or sold Origin Materials stock during the class period and suffered losses in Origin Materials stock.
 
The court will hold a final hearing in the class action against Origin Materials on a date provided in the Notice to decide whether to finally approve the settlement. If the Court finally approves the settlement, and there are no objections or appeals, settlement payments will be mailed to all Participating Class Members within a few months. However, if there are objections or appeals, resolving them can take a significant amount of time, perhaps more than a year to resolve the Origin Materials ​class action lawsuit. ​

CONTACT A ORIGIN MATERIALS STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN ORIGIN MATERIALS STOCK ABOUT AN ORIGIN MATERIALS CLASS ACTION LAWSUIT

​If you suffered losses in Origin Materials stock, contact Origin Materials stock loss lawyer Timothy L. Miles today for a free case evaluation about a class action against Origin Materials. Call today and see what an Origin Materials stock loss lawyer can do for you if you suffered losses in Origin Materials stock.

Origin Materials stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027