Ginkgo Bioworks settles shareholder derivative lawsuits for $4.1 million

Ginkgo Bioworks Holdings Inc. (NYSE: DNA) announced a settlement of multiple shareholder derivative lawsuits for $4.125 million, according to a court notice filed in the U.S. District Court for the Northern District of California.

The settlement resolves federal derivative actions filed by shareholders Weining Hu and Eric Bowers, as well as a consolidated derivative action in Delaware Chancery Court. Under the agreement dated May 27, 2025, the defendants' insurers will pay the settlement amount to Ginkgo within 30 days of court approval.

The settlement includes $2.75 million in attorneys' fees and expenses, with $2,000 service awards for each plaintiff. As part of the agreement, Ginkgo will terminate an unspecified contract and implement corporate governance reforms for at least three years.

Ginkgo's board, including independent directors not named as defendants, determined the settlement provides substantial benefit to the company and shareholders. The board concluded the terms are fair and in the best interests of Ginkgo and its stockholders.

A settlement hearing is scheduled for December 18, 2025, at 1:30 p.m. PST at the Oakland federal courthouse. Shareholders who held Ginkgo common stock as of May 27, 2025, may object to the settlement by filing written objections with the court by December 4, 2025.

The settlement amount covers all fees and expenses, with defendants and their insurers not required to pay additional amounts beyond the $4.125 million, except for notification costs as specified in the settlement agreement.

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