Marrone Bio Innovations

On October 14, 2015, Bottini & Bottini filed a complaint in California state court against officers and directors of Marrone Bio Innovations, Inc. and its auditor (Ernst & Young), alleging breaches of fiduciary duty and accounting malpractice related to false financial statements issued by Marrone. The Company has admitted that the financial statements were false and that the Company will be required to restate its financial results.

On September 3, 2014, the Company filed a Form 8-K with the SEC, announcing, among other things, that certain of its previously issued financial statements should no longer be relied upon as being in compliance with generally accepted accounting principles. In the September 3, 2014 Form 8-K, the Company stated, in pertinent part:

"On September 3, 2014, we issued a press release announcing that our board’s Audit Committee has commenced an internal investigation after learning of documents calling into question the recognition of revenue in the fourth quarter of 2013 for an $870,000 transaction. On September 2, 2014 the Audit Committee concluded, after consultation with management, that our previously reported financial statements as of December 31, 2013 and for the fiscal year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, the related report of the independent auditors on those 2013 financial statements dated March 25, 2014, and the unaudited interim financial statements included in the Company’s Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2014 and June 30, 2014, should no longer be relied upon. The Audit Committee of the Board of Directors of the Company and Company management have discussed the foregoing matters with the Company’s independent registered public accounting firm, Ernst & Young LLP."

On news of the aforementioned accounting impropriety, the trading price of the Company’s shares fell $2.50, or over 44%, to close at $3.15 on September 3, 2014. The Company has been subjected to securities class action litigation as a result of defendants’ wrongdoing.