TWIST ALERT: Bragar Eagel & Squire, P.C. Reminds Investors that a Class Action Lawsuit Has Been Filed Against Twist Bioscience Corp and Encourages Investors to Contact the Firm
NEW YORK, Dec. 23, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Twist…
NEW YORK, Dec. 23, 2022 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, reminds investors that a class action lawsuit has been filed against Twist Bioscience Corp ('Twist' or the 'Company') (NASDAQ: TWST) in the United States District Court of Northern California on behalf of all persons and entities who purchased or otherwise acquired Twist securities between December 13, 2019 and November 14, 2022, both dates inclusive (the 'Class Period'). Investors have until February 10, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Click here to participate in the action. Twist, a Delaware corporation with its principal executive offices in South San Francisco, California, is a biotechnology company that manufactures synthetic DNA and DNA products. Synthetic DNA products allow users to design and modify DNA for the purposes of academic research, enhancing specialty chemical production, and developing healthcare treatments, among other uses.
Twist's common stock trades in the United States on the Nasdaq Global Select Market ('NASDAQ') under the ticker symbol 'TWST.' Throughout 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. Indeed, Defendants claimed that the Company had already achieved substantial growth during the Class Period, 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. Similarly, 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. During the Class Period, Defendants also 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, Defendants projected annual capital expenditures between $95 million and $100 million, largely attributable to 'building out' this new manufacturing facility. Plaintiff and other members of the class learned the truth about the Company's actual financial health on November 15, 2022, when Scorpion Capital ('Scorpion') published a lengthy report (the 'Scorpion 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 the Scorpion Report, Twist 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 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 to the revelations in the Scorpion Report, 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.
This Complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the Company's business and operations. Specifically, as alleged in the Scorpion Report, 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. As a result of Defendants' wrongful acts and omissions, and the significant decline in the market value of the Company's common stock, Plaintiff and other members of the Class have suffered significant damages.
If you purchased or otherwise acquired Twist shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at EMAIL, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you. About Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C.
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Attorney advertising. Prior results do not guarantee similar outcomes. Contact Information: Bragar Eagel & Squire, P.C.Brandon Walker, Esq.Melissa Fortunato, Esq.(212) __EMAIL__ww.bespc.com