TerraVia Holdings, Inc. is a biotechnology company in the United States. TerraVia uses proprietary technology to change low-cost plant-based sugars into high-value oils and whole algae ingredients.

According to the law firm press release, the lawsuit alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) TerraVia’s products caused gastrointestinal distress, such as nausea and vomiting; and (2) as a result, Defendants’ statements about TerraVia’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis at all relevant times. On November 7, 2016, Bloomberg reported that TerraVia sent a letter to a distributor in July warning that TerraVia had received reports showing that algal protein can cause gastrointestinal distress. On this news, shares of TerraVia fell $0.15 per share or over 8% to close at $1.70 per share on November 7, 2016, damaging investors.

On April 7, 2017, the Court appointed Lead Plaintiffs. The Court appointed a Lead Counsel on April 18. Lead Plaintiffs filed an amended Complaint on April 26. Defendants filed a Motion to Dismiss the amended Complaint on December 3. On February 4, 2020, the Court issued an Order partially granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint.

On June 1, 2020, Plaintiffs filed a consolidated second amended Complaint.

On December 10, 2021, the Court noted that the parties had filed nothing on the Docket since September, 2020 and ordered the case administratively closed.

On February 15, 2022, Plaintiffs notified the Court they had reached a settlement with the individual Defendants and filed a Motion to recalendar the action. On February 24, the parties entered into a Stipulation and Agreement of Settlement. On July 21, the Court issued an Order denying Plaintiffs' Motion for Preliminary Approval of Settlement. On the same day, the Court issued an Order for Plaintiffs' Law Firm to show cause in writing why the Court should not impose sanctions for professional conduct violations.

The Court granted preliminary approval of the Settlement on January 4, 2024.