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TWST.US
id: 510

TWST Scorpion Fraud Accusations

N.D. California
Court
22-CV-08168
Case number
10 Feb 2023
Lead Plaintiff motion deadline
On November 15, 2022, short seller activist Scorpion Capital published a report alleging that Twist is “a cash-burning inferno that is not a going concern.” Specifically, Scorpion alleged that,
  • Twist’s purported DNA chip technology is a “farce” comparable to Theranos Inc.’s now infamous non-existent blood-testing technology, and the Company’s growth and revenues are unsustainable, among other issues.
  • The Company is perpetuating its fraud through false reporting of capital expenditures and gross margins which Scorpion claims are actually negative. Indeed.
  • 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.
  • 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%.
The Scorpion Report concluded that Twist is “operating a Ponzi-like scheme that will end in bankruptcy.”

On this news, Twist’s stock dropped over 19% on November 15, 2022, wiping out more than $420 million of Twist's capitalization.

Taking all accusations into account, Investors have reasons to suspect that the Company and its Leaders breached their fiduciary duties, seriously damaging shareholders.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Negligence
Breach of Fiduciary duty
Suspected Party
Directors
Management
Shareholder
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
15 November 2022
Filing date
12 December 2022
Lead Plaintiff Deadline
10 February 2023
Judge
Hon. Edward J. Davila
Collecting participants…

Twist Bioscience Corp

Twist Bioscience Corporation engages in the manufacture and sale of synthetic DNA-based products. The company offers synthetic genes and gene fragments used in product development for therapeutics,...

    Ticker
    TWST.US
    ISIN
    US90184D1000
    CIK
    1581280
    Sector
    Healthcare
    Industry
    Diagnostics & Research
    Country
    USA
    Address
    681 Gateway Boulevard, South San Francisco, CA, United States, 94080