Twist Bioscience Requests to Dismiss Class Action Filed by Investors

Court: N.D. California

Case: 22-CV-08168

Twist Bioscience has requested the court to dismiss the lawsuit filed by investors. The court will determine whether the case proceeds.

What is this lawsuit about?

On November 15, 2022, activist short seller Scorpion Capital published a report alleging that Twist Bioscience is “a cash-burning inferno that is not a going concern.”

Scorpion also claimed the company’s large manufacturing facility is a front to conceal fraudulent expenses and that Twist undercuts competitors with below-cost pricing, characterizing the business as a “Ponzi-like scheme” heading toward bankruptcy.

On this news, Twist’s stock dropped over 19%, erasing more than $420 million in market capitalization.

Then, on December 12, 2022, shareholders filed a claim against Twist Bioscience.

What can you do to recover your losses now?

We’re keeping track of all updates and will notify TWST investors about potential recovery.

More than 600 companies are currently facing securities class action lawsuits, and over 100 are already paying settlements. Connect your brokerage account to automatically check which ones you may have missed.