SAN FRANCISCO, CA / ACCESSWIRE / February 1, 2023 / Hagens Berman urges Twist Bioscience Corporation (NASDAQ:TWST) investors who suffered significant losses to submit your losses now.
Class Period: Dec. 13, 2019 - Nov. 14, 2022
Lead Plaintiff Deadline: Feb. 10, 2023
Contact An Attorney Now: [email protected]
Twist Bioscience Corporation (NASDAQ: TWST) Securities Fraud Class Action:
The litigation challenges Twist's statements regarding its proprietary technology related to its synthetic DNA products, which purportedly positioned the company for sustained significant growth and to build a "Factory of the Future" in Oregon.
According to the complaint, 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 emerged on Nov. 15, 2022, when Scorpion Capital published a scathing report, alleging 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
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. 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 further alleged that the Company'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, the price of Twist shares crashed about 20% on Nov. 15, injuring investors.
"We're focused on investors' losses and proving Twist lied about its technology and true financial performance," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Twist and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Twist should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP