San Diego, CA -- (SBWire) -- 01/19/2023 --An investor, who purchased shares of Twist Bioscience Corporation (NASDAQ: TWST), filed a lawsuit over alleged violations of Federal Securities Laws by Twist Bioscience Corporation.
Investors who purchased shares of Twist Bioscience Corporation (NASDAQ: TWST) have certain options and for certain investors are short and strict deadlines running. Deadline: February 10, 2023. NASDAQ: TWST investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.
San Francisco, CA based Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. Twist Bioscience Corporation (NASDAQ: TWST) reported that its Total Revenue rose from $132.33 million for the 12 months period that ended on September 30, 2021, to $203.56 million for the 12 months period that ended on September 30, 2022, and that its Net Loss over those respective time periods increased from $152.09 million to $217.86 million.
Twist Bioscience Corporation 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, when Twist reported its financial results for the third quarter of fiscal year 2022, Twist Bioscience Corporation 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 research report, alleging that the Company is a "cash-burning inferno". Specifically, the report alleged that, among other things, Twist Bioscience Corporation'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 Report, Twist Bioscience Corporation 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, Report concluded that Twist Bioscience Corporation is "operating a Ponzi-like scheme that will end in bankruptcy."
Shares of Twist Bioscience Corporation (NASDAQ: TWST) declined from $40.50 per share on November 11, 2022, to as low as $23.90 per share on November 17, 2022
According to the complaint the plaintiff alleges on behalf of purchasers of Twist Bioscience Corporation (NASDAQ: TWST) common shares between December 13, 2019, and November 14, 2022, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 13, 2019, and November 14, 2022, the Defendants repeatedly assured investors that the company possessed innovative proprietary technology relating to its synthetic DNA products that positioned Twist for significant future growth, that the Defendants claimed that Twist had already achieved substantial growth between December 13, 2019, and November 14, 2022, growing from a customer base of approximately 1,300 diagnostic companies, hospitals, research institutions, and others at the end of fiscal year 2019, to approximately 2,900 customers at the end of fiscal year 2021, and that as alleged in the report by Scorpion Capital, 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, and that as a result of Defendants' wrongful acts and omissions, and the significant decline in the market value of Twist's common stock, investors between December 13, 2019, and November 14, 2022 have suffered significant damages.
Those who purchased shares of Twist Bioscience Corporation (NASDAQ: TWST) have certain options and should contact the Shareholders Foundation.
Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com
About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
NASDAQ:TWST Shareholder Alert: Lawsuit Alleges Misleading Statements by Twist Bioscience
A lawsuit was filed on behalf of investors in Twist Bioscience Corporation (NASDAQ:TWST) shares over alleged securities laws violations.