Enzymotec Securities Litigation

You or someone in your family may have purchased or otherwise acquired Enzymotec common stock during the Settlement Class Period.

You may review a copy of the Notice here.

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This Litigation alleges that the Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by misrepresenting the viability of Enzymotec’s business, the strength of its customer relationships, and the sales visibility that these relationships provided. The Litigation also includes a second set of claims against the Securities Act Defendants, alleging violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 in regard to Enzymotec shares pursuant and/or traceable to the Company’s IPO and the Company’s SPO. The lawsuit seeks money damages against Defendants for alleged violations of the federal securities laws. Defendants have expressly denied, and continue to deny all allegations of wrongdoing or liability against them in the Litigation.

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The Settlement avoids the risks and costs of lengthy and uncertain continued litigation, including potential trial and likely appeals, and instead allows eligible Settlement Class Members to be compensated now. After extensive good-faith settlement discussions during the course of the Litigation, counsel for Lead Plaintiffs and for Defendants participated in a mediation session. Prior to the settlement conference, each side submitted a comprehensive statement setting forth its respective position. As a result of negotiations that occurred during and after the settlement conference, the parties reached an agreement to settle the Litigation. Lead Plaintiffs and Lead Plaintiffs’ Counsel believe that the Settlement is in the best interests of all Settlement Class Members.

Defendants have denied and continue to deny any and all wrongdoing whatsoever, but have nonetheless agreed to the Settlement in order to eliminate the uncertainty, distraction, disruption, burden, risk, and expense of further litigation.

The Court approved the Settlement at the Fairness Hearing on January 24, 2018.

If there were no Settlement and Lead Plaintiff failed to establish any essential legal or factual element of their claims against the Defendants, neither Lead Plaintiff nor members of the Class would recover anything from the Defendants. Also, if the Defendants were successful in proving any of their defenses, the Class likely would recover substantially less than the amount provided in the Settlement, or nothing at all.

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The Settlement covers:

1. As to claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, all persons or entities who purchased or otherwise acquired Enzymotec common stock during the period September 27, 2013 and August 4, 2014, inclusive, and were damaged thereby;
2. As to claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, all persons or entities who purchased shares of Enzymotec common stock issued in the Initial Public Offering, and were damaged thereby; and
3. As to claims under Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, all persons or entities who purchased shares of Enzymotec common stock issued in the Secondary Public Offering that occurred on or about February 27, 2014, and were damaged thereby.

Excluded from the Class are: Defendants and all officers and directors of Enzymotec, and all such excluded persons’ immediate family members, legal representatives, heirs, predecessors, successors and assigns, and any entity in which any excluded person has or had a controlling interest. Also excluded from the Settlement Class are persons who filed valid and timely requests for exclusion by following the instructions in FAQ 10.

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The Court held a Fairness Hearing on January 24, 2018 and approved the Settlement.

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If you are a Settlement Class Member and you did not request exclusion from the Settlement Class in the manner described in FAQ 10, you may not sue any of the Released Persons (as defined in the Settlement Agreement), including Defendants, based on the same or similar facts and issues as in the Litigation. The precise scope of the releases is described below and in section 4 of the Settlement Agreement. If you have a pending lawsuit against any of the Defendants, speak to your lawyer in that case immediately.

If you are a Settlement Class Member and you did not exclude yourself from the Settlement Class, you will be bound by any orders issued by the Court. If the Settlement is approved, the Court will enter a judgment (the “Judgment”). The Judgment will dismiss with prejudice the claims against Defendants and will provide that, upon the Effective Date of the Settlement, Lead Plaintiffs and other members of the Settlement Class, on behalf of themselves and each of their respective legal representatives, heirs, executors, successors, and assigns in their capacities as such, will have fully, finally and forever compromised, settled, remised, released, resolved, relinquished, waived and discharged Defendants and the other Released Persons (as defined below), and each of their respective legal representatives, heirs, executors, successors, and assigns, in their capacities as such, of and from each and every Released Claim (as defined below), and shall forever be enjoined from prosecuting any or all of the Released Plaintiff’s Claims against any of the Defendants and the other Released Persons.

“Released Claims” means any and all claims, debts, demands, damages, liabilities, losses, rights, obligations, judgments, suits, and causes of action of every nature and description whatsoever (including, but not limited to, any claims for damages, interest, attorneys’ fees, expert or consulting fees, and any other costs, expenses, or liabilities whatsoever), whether based on federal, state, local, statutory or common law, or any other law, rule, or regulation, whether fixed or contingent, accrued or unaccrued, liquidated or unliquidated, at law or in equity, matured or unmatured, whether in nature of class, individual, representative, or in any other capacity, whether asserted directly, indirectly, derivatively, or in any other manner, including both known claims and Unknown Claims: (i) that have been or could have been asserted in the Litigation by the Lead Plaintiffs and/or Settlement Class Members or any of them against any of the Released Persons, including, without limitation, those concerning any statements made by any Defendant that Lead Plaintiffs allege in the Litigation were false or misleading, or any of the alleged acts, omissions, representations, facts, events, matters, transactions, or occurrences asserted in or relating to the Litigation, or otherwise alleged, asserted, or contended in the Litigation; or (ii) that relate to the purchase, acquisition, holding, or sale of Enzymotec common stock during the Settlement Class Period by Lead Plaintiffs or any Settlement Class Member that were or might have been asserted on behalf of themselves, their heirs, executors, administrators, successors, and assigns against the Released Persons or any of them. Released Claims do not include any claims relating to the enforcement of the Settlement or any claims against any person or entity who or which submits a request for exclusion from the Settlement Class that is accepted by the Court.

“Released Persons” means Defendants and Underwriter Defendants (as defined in the Settlement Agreement) collectively and each of them, and each of any Defendant’s or Underwriter Defendant’s respective family members and current, former, or future parents, subsidiaries, associates, affiliates, partners, joint venturers, officers, directors, principals, shareholders, members, agents, representatives, employees, attorneys, financial or investment advisors, consultants, accountants, investment bankers, underwriters, commercial bankers, trustees, engineers, insurers, co-insurers, reinsurers, heirs, assigns, executors, general or limited partners or partnerships, personal or legal representatives, estates, administrators, predecessors, successors, advisors, and/or any other individual or entity in which any Defendant or Underwriter Defendant has or had a controlling interest or which is or was related to or affiliated with any Defendant or Underwriter Defendant.

“Unknown Claims” means any Released Claims which Plaintiffs or any Settlement Class Member does not know or suspect to exist in his, her, or its favor at the time of the release of the Released Persons which, if known by him, her, or it, might have affected his, her, or its Settlement with and release of the Released Persons, or might have affected his, her, or its decision not to object to this Settlement. Unknown Claims include those claims in which some or all of the facts comprising the claim may be suspected, or even undisclosed or hidden.

With respect to any and all Released Claims, the parties have further stipulated and agreed that, upon the Effective Date (upon condition of the occurrences of all of the following events: (a) payment of the Settlement Fund; (b) entry of the Preliminary Approval Order; (c) entry of the Judgment; (d) the Judgment becoming Final; and (e) the Settlement is not otherwise terminated pursuant to the Stipulation, as defined in the Settlement Agreement), Lead Plaintiffs shall expressly waive, and each of the Settlement Class Members shall be deemed to have, and by operation of the Judgment shall have, expressly waived the provisions, rights, and benefits of California Civil Code § 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Upon the Effective Date, Lead Plaintiffs shall expressly waive, and each of the Settlement Class Members shall be deemed to have, and by operation of the Judgment shall have, expressly waived any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States, or principle of common law or foreign law, which is similar, comparable, or equivalent in effect to California Civil Code § 1542. Lead Plaintiffs and Settlement Class Members may hereafter discover facts in addition to or different from those which he, she, or it now knows or believes to be true with respect to the subject matter of the Released Claims, but Lead Plaintiffs shall expressly, and each Settlement Class Member, upon the Effective Date, shall be deemed to have, and by operation of the Judgment shall have, fully, finally, and forever settled and released any and all Released Claims, known or unknown, suspected or unsuspected, contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore have existed, upon any theory of law or equity now existing or coming into existence in the future, including, but not limited to, conduct which is negligent, reckless, intentional, with or without malice, or a breach of any duty, law, or rule, without regard to the subsequent discovery or existence of such different or additional facts. Lead Plaintiffs acknowledge, and the Settlement Class Members shall be deemed by operation of the Judgment to have acknowledged, that the foregoing waiver was separately bargained for and a key element of the Settlement of which this release is a part.

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At the Fairness Hearing, the Court awarded attorneys’ fees in the amount of $2,166,666.66, and for reimbursement of litigation expenses totaling $131,876.43, both of which will be paid from the Settlement Fund. Settlement Class Members are not personally liable for such fees or expenses. To date, Lead Plaintiffs’ Counsel has not received any payment for its services in conducting this Litigation on behalf of Lead Plaintiffs and the Settlement Class, nor has it received any reimbursement of litigation expenses. The fee requested will compensate Lead Plaintiffs’ Counsel for its work in achieving the Settlement and is within the range of fees awarded to class counsel under similar circumstances in other cases of this type.

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If you purchased or acquired Enzymotec common stock during the Class Period, and you are not excluded from the definition of the Class or did not timely exclude yourself from the Class in the manner provided in the Notice, then you are a member of the Class and you are bound by the proposed Settlement, and by any judgment or determination of the Court affecting the Class. To qualify for a payment, you must have timely completed and returned a Proof of Claim with adequate supporting documentation to the Claims Administrator postmarked no later than December 26, 2017.

Those who excluded themselves from the Class, and those who did not submit valid Proof of Claim Forms with adequate supporting documentation, will not be eligible to share in the Settlement.

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The deadline to exclude yourself has passed.

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The Court approved the Settlement and Plan of Allocation after the hearing on January 24, 2018.

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The Fairness Hearing was held on January 24, 2018.

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The deadline to submit a claim was on December 26, 2017.

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The Notice and this website summarize the Settlement. More details are in the Settlement Agreement, which has been filed with the Court. You can obtain a copy of the Settlement Agreement from the Clerk’s office at the United States District Court, District of New Jersey, 50 Walnut Street, Newark, NJ 07101, during regular business hours, or it can be viewed or downloaded here.

For any additional information, you can write to a representative of Lead Plaintiffs’ Counsel, Lester R. Hooker (see FAQ 12), or you may contact the Claims Administrator at:

Enzymotec Securities Litigation
Claims Administrator
P.O. Box 4079
Portland, OR 97208-4079
1-844-418-6627
info@EnzymotecSecuritiesLitigation.com

Please do not call the Court or the Clerk of the Court for additional information about the Settlement.

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