Kessler Topaz Meltzer & Check, LLP Has Filed a Securities Fraud Class Action Lawsuit Against Twist Bioscience Corporation
RADNOR, Pa., Jan. 11, 2023 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that the firm has filed a securities class action lawsuit against Twist Bioscience Corporation (“Twist”) (NASDAQ: TWST) on behalf of investors who purchased or acquired Twist common stock between December 13, 2019, and November 14, 2022, inclusive (the “Class Period”). This action, captioned Peters v. Twist Bioscience Corporation, et al., Case No. 3:22-cv-08168, was filed in the United States District Court for the Northern District of California and is assigned to the Honorable Edward J. Davila.
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LEAD PLAINTIFF DEADLINE: FEBRUARY 10, 2023
CLASS PERIOD: DECEMBER 13, 2019 THROUGH NOVEMBER 14, 2022
CONTACT AN ATTORNEY TO DISCUSS YOUR RIGHTS:
Jonathan Naji, Esq. (484) 270-1453 or Toll Free (844) 887-9500 or Email at email@example.com
Twist, a Delaware corporation with its principal executive office in South San Francisco, California, is a biotechnology company that manufactures synthetic DNA and DNA products.
Throughout the Class Period, Defendants repeatedly assured investors that the company possessed innovative proprietary technology relating to its synthetic DNA products that positioned Twist for significant future growth. Similarly, Defendants reported skyrocketing gross margins, which purportedly grew from 12.8% in fiscal year 2019, to 39.1% in fiscal year 2021, with margins projected to reach 40% for fiscal year 2022. During the Class Period, Defendants also announced plans to build a “Factory of the Future” in Wilsonville, Oregon (the “Oregon Facility”), which would purportedly provide hundreds of jobs and occupy 110,000 square feet. By August 2022, Defendants projected annual capital expenditures between $95 million and $100 million, largely attributable to “building out” this new manufacturing facility.
The truth about Twist’s actual financial health was revealed on November 15, 2022, when Scorpion Capital (“Scorpion”) published a lengthy report (the “Scorpion Report”) alleging that Twist is “a cash-burning inferno that is not a going concern.” Specifically, Scorpion alleged that, among other things, Twist’s purported DNA chip technology is a “farce” comparable to Theranos Inc.’s now infamous non-existent blood-testing technology, and that Twist’s growth and revenues are unsustainable, among other issues.
According to the Scorpion Report, Twist is perpetuating its fraud through false reporting of capital expenditures and gross margins—which Scorpion claims are actually negative. Indeed, Scorpion’s investigation of the forthcoming Oregon Facility revealed no evidence that Twist is preparing to begin manufacturing there, suggesting that the company is using the facility to hide large operating expenses as fraudulent capital expenditures. Scorpion further alleged that Twist’s growth is dependent upon unsustainable pricing strategies, such as using below-cost prices to undercut competitors by as much as 70% to 85%. Ultimately, the Scorpion Report concluded that Twist is “operating a Ponzi-like scheme that will end in bankruptcy.”
In response to the revelations in the Scorpion Report, the price of Twist common stock fell $7.57 per share, or nearly 20%, from a close of $38.00 per share on November 14, 2022, to close at $30.43 per share on November 15, 2022.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about Twist’s business and operations. Specifically, as alleged in the Scorpion Report, Defendants overstated the commercial viability of Twist’s synthetic DNA manufacturing technology while engaging in accounting fraud and using unsustainable pricing to inflate the company’s true financial condition and prospects. As a result of Defendants’ wrongful acts and omissions, and the significant decline in the market value of Twist’s common stock, Plaintiff and other members of the Class have suffered significant damages.
WHAT CAN I DO?
Twist investors may, no later than February 10, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Twist investors who have suffered significant losses to contact the firm directly to acquire more information.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries.
For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
Jonathan Naji, Esq.
280 King of Prussia Road
Radnor, PA 19087
(844) 887-9500 (toll free)