Ademi LLP is investigating possible securities fraud claims against Ginkgo (NYSE:DNA). The investigation results from inaccurate statements Ginkgo may have made regarding its business operations and prospects.
The investigation focuses on whether Ginkgo was properly recognizing revenue with respect to related party transactions. A report from Scorpion Capital alleged that Ginkgo is a "Frankenstein mash-up of the worst frauds." Scorpion reported that a bulk of Ginkgo's revenue is phantom, or non-cash based, and instead is based on accounting irregularities enabled by a related shell companies. Scorpion based its allegation on research and conversations with former and current employees of both Ginkgo and the companies it works with." For example, according to Scorpian, “a senior employee [of one of Ginkgo's customers] stated unequivocally that they have never paid Ginkgo cash for foundry services and are merely using 'free' R&D credits following investments by Ginkgo and Viking."