Ginkgo Bioworks receives preliminary court approval for derivative lawsuit settlement

Published 29/08/2025, 23:40
Ginkgo Bioworks receives preliminary court approval for derivative lawsuit settlement

Ginkgo Bioworks Holdings, Inc. (NYSE:DNA), a synthetic biology company with a market capitalization of $674.53 million that according to InvestingPro analysis is currently trading below its Fair Value, announced that on Thursday the United States District Court for the Northern District of California granted preliminary approval of a proposed settlement to resolve multiple stockholder derivative actions. The settlement agreement, originally reached on May 27, 2025, addresses lawsuits filed on behalf of the company against certain individual defendants.

According to a statement from the company’s press release and SEC filing, the preliminary court order requires Ginkgo Bioworks to notify stockholders about the settlement and schedules a final hearing for December 18, 2025, at 1:30 p.m. Pacific Time.

Under the terms of the proposed settlement, which remains subject to final court approval, Ginkgo Bioworks will receive a payment of $4,125,000 funded by insurance. From this amount, plaintiffs’ counsel will request a fee and expense award of $2,750,000. The company also agreed to adopt and maintain certain corporate governance and other reforms as part of the settlement. In exchange, plaintiffs will dismiss the derivative actions with prejudice and provide releases for the matters alleged in the lawsuits.

The lawsuits involved in the settlement include Hu v. Baker et al. and Bowers v. Kelly et al., both in the Northern District of California, as well as In re Ginkgo Bioworks Holdings, Inc. Stockholder Derivative Litigation in the Delaware Court of Chancery.

The information in this article is based on a statement from the company’s press release and its Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Ginkgo Bioworks Holdings reported its second-quarter 2025 earnings, which revealed a notable miss on earnings per share (EPS) expectations. The company posted an EPS of -1.1, significantly below the forecast of -0.1. Additionally, Ginkgo Bioworks’ revenue was reported at 49.6 million, falling short of the anticipated 86.73 million. These results have drawn attention from investors and analysts alike, highlighting a challenging quarter for the company. While there were no reports of mergers or acquisitions, the earnings miss has been a focal point. Analysts have yet to publicly adjust their ratings following these results. The market reaction to these figures was significant, although specific stock price movements are not detailed here. Investors are closely monitoring how Ginkgo Bioworks will address these financial discrepancies in future quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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