Robbins Arroyo LLP: TerraVia Holdings, Inc. (TVIA) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against TerraVia Holdings, Inc. (NASDAQGS: TVIA) in the U.S. District Court for the Northern District of California. The complaint is brought on behalf of all purchasers of TerraVia securities between August 8, 2016 and November 7, 2016, for alleged violations of the Securities Exchange Act of 1934 by TerraVia’s officers and directors. TerraVia creates and sells food, nutrition, and specialty ingredients from algae.
TerraVia Accused of Misrepresenting Its Financial Condition
According to the complaint, TerraVia stated on its official website that its AlgaVia products delivered a unique set of nutritional benefits, including: free of known allergens, healthy and indulgent, high protein digestibility, and also stated that its products “help make delicious foods that are better for people and inspire solutions for a better planet.” The company also submitted several filings with the U.S. Securities and Exchange Commission, which stated, “Our food oils are formulated to offer a variety of functional benefits such as enhanced structuring capabilities and stability while providing robust formulation and process flexibility.” However, the complaint alleges that TerraVia failed to disclose that the company’s products caused gastrointestinal distress.
On November 7, 2016, Bloomberg published an article stating that Rosa Foods, Inc.’s meal replacement drink, Soylent, contains an algal flour ingredient provided by TerraVia that causes consumers to become sick, and that Rosa Foods will be removing the ingredient altogether from its products by early 2017. Although TerraVia’s Senior Vice President adamantly denied that the company’s algal flour was responsible, Bloomberg further reported that TerraVia sent a letter in July to a distributor of a Colorado energy bar company “warning that it had received a ‘modest number of reports’ showing that algal protein can cause ‘gastrointestinal distress.’” On this news, TerraVia stock fell $0.15 per share, or over 8%, to close at $1.70 per share on November 7, 2016.
TerraVia Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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