Lawsuit filed for Investors in shares of Twist Bioscience Corporation (NASDAQ: TWST)

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 in connection with certain allegedly false and misleading statements.

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 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

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:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, 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, investigations, and/or settlements are not filed/initiated/reached and/or are not 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.

This release was published on openPR.