GRABAR LAW INVESTIGATES POTENTIAL CLAIMS ON BEHALF OF SHAREHOLDERS OF TWIST BIOSCIENCE CORPORATION (NASDAQ: TWST)
Twist Bioscience is a biotechnology company that manufactures synthetic DNA and DNA products for the purpose of allowing its clients to design and modify DNA for academic research, specialty chemical production, and develop healthcare treatments.
It is alleged that the Company and certain of its officers overstated the commercial viability of Twist Bioscience’s synthetic DNA manufacturing technology while engaging in accounting fraud and using unsustainable pricing to inflate Twist Bioscience’s true financial condition and prospects.
On November 15, 2022, Scorpion Capital published a report in which it alleged that, among other things, Twist Bioscience’s purported DNA chip technology is a “farce” and that the Company is perpetuating a fraud through false reporting of capital expenditures and gross margins – which Scorpion claims are actually negative. Indeed, Scorpion’s investigation of Twist Bioscience’s forthcoming Oregon facility revealed no evidence that Twist Bioscience is preparing to begin manufacturing there, suggesting that Twist Bioscience is using the facility to hide large operating expenses as fraudulent capital expenditures. Scorpion further alleged that Twist Bioscience’s growth is dependent upon unsustainable pricing strategies, such as using below-cost prices to undercut competitors by as much as 70% to 85%. The Scorpion report concluded that Twist Bioscience is “operating an unsustainable Ponzi-like scheme” that will end in bankruptcy. On this news, the price of Twist Bioscience common stock fell by nearly 20%.
Twist shareholders who have held company stock since before December 13, 2019, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award at no cost to them whatsoever.
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