INVESTOR ALERT: Edelson Lechtzin LLP is Investigating Securities Fraud Claims on Behalf of Twist Bioscience Corporation (NASDAQ: TWST) Shareholders
NEWTOWN, PA, December 13, 2022 — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of Twist Bioscience Corporation (“Twist” or the “Company”) (NASDAQ: TWST) common.
Investors who purchased Twist common stock between December 13, 2019, and November 14, 2022, inclusive (the “Class Period”) may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than February 10, 2023. Current holders of Twist stock may pursue corporate governance reforms. Investors who wish to discuss Twist stock should contact Edelson Lechtzin LLP, toll free at 844-696-7492, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Twist Bioscience Corporation
Founded in 2013, Twist Bioscience is a biotechnology company based in San Francisco that manufactures synthetic DNA and DNA products. These products allow the user to manipulate DNA for different uses, including developing healthcare treatments, academic research, and enhancing specialty chemical production.
The Securities Fraud Claims
The Complaint alleges that, throughout the Class Period, defendants made materially false and misleading statements, and material omissions, about the Company’s business and operations. Specifically, as alleged in a November 15, 2022 Scorpion Capital report, Defendants exaggerated 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.
On November 15, 2022, the Scorpion Capital report revealed the truth about Twist’s financial health. Specifically, Scorpion alleged that Twist’s DNA chip technology is a “farce” comparable to Theranos Inc.’s now infamous nonexistent blood testing technology, and the Company’s growth and revenues are unstainable. The report accuses Twist of perpetuating this fraud through false reporting of capital expenditures and gross margins, which Scorpion claims are negative. Scorpion wrote that Twist is “operating a Ponzi-like scheme that will end in bankruptcy.” In response to these revelations, the price of Twist stock plummeted $7.57 per share (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.
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Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.