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TWST.US
id: 510, Created by Stan Vick Chase, Scout
TWST Scorpion Fraud Accusations
How it works?
- We find Attorney for the Case
- Attorney files case on behalf of Investors
- You get updates and receive payout in case of success
Would it cost me anything?
- No, you do not pay anything out of your pocket neither to us, nor to Attorney
- Attorneys get % fee in case of success
- Platform charges service fee from Attorneys
What are the chances for success?
Every Case is unique, but statistically, 47% of Cases end up with a settlement.
Please see below recent successful cases:
How it works?
- We find Attorney for the Case
- Attorney files case on behalf of Investors
- You get updates and receive payout in case of success
Would it cost me anything?
- No, you do not pay anything out of your pocket neither to us, nor to Attorney
- Attorneys get % fee in case of success
- Platform charges service fee from Attorneys
What are the chances for success?
Every Case is unique, but statistically, 47% of Cases end up with a settlement.
Please see below recent successful cases:
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.
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
Case number
22-CV-08168
Filing date
12 December 2022
Lead Plaintiff Deadline
10 February 2023
Court
Northern District of California
Judge
Hon. Edward J. Davila