SAN FRANCISCO, CA / ACCESSWIRE / January 24, 2023 / National plaintiffs law firm Lieff Cabraser Heimann & Bernstein, LLP urges investors in Twist Bioscience Corporation ("Twist" or the "Company") who suffered losses from trading Twist common stock (NASDAQ:TWST) between December 13, 2019 and November 14, 2022 to contact our law firm immediately regarding the pending securities fraud class action against Twist. The deadline to apply to be a lead plaintiff is February 10, 2023.
Class Period: December 13, 2019 - November 14, 2022
Lead Plaintiff Motion Deadline: February 10, 2023
Case information: lieffcabraser.com/securities/twist/
Contact us: Email or text [email protected] or call 1-800-541-7358
The securities class action alleges that throughout the Class Period, Twist and its senior representatives made materially false and/or misleading statements, as well as failed to disclose that 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.
The truth about Twist's financial health was revealed on November 15, 2022, when investment research firm Scorpion Capital ("Scorpion") published a report (the "Scorpion Report") alleging that Twist is "a cash-burning inferno that is not a going concern." Specifically, Scorpion claimed that 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. 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 its closing price of $38.00 per share on November 14, 2022, to close at $30.43 per share on November 15, 2022.
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SOURCE: Lieff Cabraser Heimann & Bernstein