Twist Bioscience Corporation (TWST) Shareholder Notice: Robbins LLP Reminds Investors of Class Action Against Twist Bioscience Corporation
SAN DIEGO, Dec. 20, 2022 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired Twist Bioscience Corporation (NASDAQ: TWST) common stock between December 13, 2019 and November 14, 2022, for violations of the Securities Exchange Act of 1934. Twist is a biotechnology company that manufactures synthetic DNA and DNA products.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Twist Bioscience. Shareholders who want to act as lead plaintiff for the class must file their papers by February 10, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Twist Bioscience Corporation (TWST) Overstated the Commercial Viability of its Synthetic DNA Manufacturing Technology While Engaging in Accounting Fraud
According to the complaint, during 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. 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. Defendants also announced plans to build a “Factory of the Future” in Wilsonville, Oregon, which would purportedly provide hundreds of jobs and occupy 110,000 square feet. By August 2022, when Twist reported its financial results for the third quarter of fiscal year 2022, Defendants projected annual capital expenditures between $95 million and $100 million, largely attributable to “building out” this new manufacturing facility.
On November 15, 2022, Scorpion Capital published a lengthy 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 the Company’s growth and revenues are unsustainable, among other issues. According to Scorpion, Twist is perpetuating its fraud through false reporting of capital expenditures and gross margins—which Scorpion claims are actually negative. Scorpion’s investigation of the forthcoming Oregon Facility revealed no evidence that the Company is preparing to begin manufacturing there, suggesting that the Company is using the facility to hide large operating expenses as fraudulent capital expenditures. Scorpion concluded that Twist is “operating a Ponzi-like scheme that will end in bankruptcy.” In response to these revelations, 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.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Twist Bioscience Corporation settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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