Danimer Scientific
🧟 ZombieTrust Size
$380M
Peak Price
$64.80
Current Price
$0.50
Return
-99.2%
Peak Market Cap
$7.0B
What Happened
Bioplastics company that claimed biodegradable PHA would replace petroleum plastics. Hindenburg short report alleged fraud. SEC charged executives with misleading investors.
Danimer merged with Live Oak Acquisition Corp in December 2020. The company claimed its Nodax PHA bioplastic could decompose in oceans and landfills, replacing petroleum-based plastics. Pepsi, Nestle, and others signed deals. Stock hit $65. Then Hindenburg Research published a devastating report alleging that Danimers claims about biodegradability were false. The Wall Street Journal confirmed the allegations. SEC charged the CEO and CFO with fraud in 2023. Stock crashed 99% to $0.50.
Projections vs. Reality
Projected Revenue
$500M
What they told investors
Actual Revenue
$48M
What actually happened
Hype-to-Reality Ratio: 10.0x
Key People
Stephen Croskrey
CEO
SEC fraud charges for misleading investors about biodegradability
John Dowdy III
CFO
Also charged by SEC
Timeline
2020-10
SPAC merger announced
2020-12
Merger completed
2021-02
Stock peaks at $64.80
2021-05
Hindenburg short report alleges fraud
2023-08
SEC charges CEO and CFO with fraud
🔀 Reverse Stock Split
Reverse split ratio: 1:24. Reverse splits are used to avoid delisting but destroy shareholder value through the illusion of a higher stock price.
⚖️ Legal Actions
• SEC enforcement action or investigation
• Class action lawsuit filed by shareholders
📄 SEC Filings
View all EDGAR filings for Danimer Scientific
Risk Scores
Dilution Score
78/100
Insider Profit Index
72/100
Hype-to-Reality Ratio
10.0x
Projected ÷ actual revenue