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Investors who purchased or otherwise acquired Twist Bioscience Corp. common stock between Dec. 20, 2018, and Nov. 15, 2022, or in the company's December 2020 secondary offering at $110 per share may be eligible to claim a cash payment from a class action settlement.
Twist Bioscience and certain executives agreed to pay $17 million to settle a securities class action lawsuit alleging they made false and misleading statements about the company's production process, product quality and accounting. The lawsuit claimed those statements inflated the price of Twist common stock and caused investor losses when corrective information reached the market on Nov. 15, 2022.
Who can file a claim?
The settlement class includes all persons and entities who purchased or otherwise acquired Twist common stock in the December 2020 offering pursuant to the 2020 registration statement or between Dec. 20, 2018, and Nov. 15, 2022, inclusive, and suffered damages as a result.
Additional details
- Both individuals and entities can be class members.
- The settlement includes investors who held stock in their own name and those who held through a broker or other nominee.
- The beneficial owner or a legal representative must submit the claim.
- Joint owners must each sign the claim form.
- Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
- Each separate legal entity must submit a separate claim covering all of that entity's accounts.
How much can class members get?
The total settlement fund is $17,050,000. The amount each class member receives depends on several factors:
- The number of valid claims submitted
- The number of shares purchased or acquired
- The price paid for those shares
- The timing of each purchase, sale and holding
- The total recognized losses of all claimants
The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:
- The estimated average recovery is $0.31 per affected share before deductions. After estimated deductions of $0.09 per share for court-approved fees and expenses, the estimated average net recovery is approximately $0.22 per share.
- Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
- The settlement administrator will calculate a recognized loss for each purchase and use the greater of the amount produced by the Securities Act formulas and the amount produced by the Exchange Act formulas.
- The Securities Act formulas apply only to shares investors bought in the December 2020 offering at $110 per share.
- For offering shares sold before the opening of trading on Nov. 15, 2022, the recognized loss is 10% of $110 minus the sale price.
- For offering shares sold between the opening of trading on Nov. 15, 2022, and the opening of trading on Oct. 11, 2023, the recognized loss is $8.11 plus 10% of $110 minus the sale price minus $8.11.
- For offering shares sold between the opening of trading on Oct. 11, 2023, and the close of trading on Aug. 7, 2026, the recognized loss is $8.11 plus 10% of $110 minus $8.11 minus the greater of the sale price or $19.26.
- For offering shares held as of the close of trading on Aug. 7, 2026, the recognized loss is $16.37 per share.
- Recognized losses on offering shares sold or held after the opening of trading on Nov. 15, 2022, increase by $0.81 per share.
- The Exchange Act formulas apply to shares investors bought between Dec. 20, 2018, and Nov. 14, 2022. For those shares sold before Nov. 15, 2022, the recognized loss is $0.
- For shares sold between Nov. 15, 2022, and the close of trading on Feb. 10, 2023, the recognized loss is the least of $8.11, the purchase price minus the sale price, or the purchase price minus the average closing price between Nov. 15, 2022, and the sale date listed in Table A (Page 29 of the settlement notice).
- For shares held as of the close of trading on Feb. 10, 2023, the recognized loss is the lesser of $8.11 or the purchase price minus $25.98, the average closing price during the 90-day lookback period.
- The settlement administrator will match purchases and sales on a first-in, first-out basis.
- The settlement administrator will not calculate a recognized loss on a short sale or on shares bought to cover a short sale.
- When a class member exercises an option, the settlement administrator treats the exercise date as the trade date and the exercise price as the purchase or sale price.
- The settlement administrator will set any recognized loss that calculates to a negative number to $0.
- If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
- If the net settlement fund exceeds total recognized losses, the settlement administrator will distribute the excess on a pro rata basis.
- Class members whose payment would be less than $10 will not receive a payout.
How to claim a Twist Bioscience securities class action settlement payment
Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Nov. 17, 2026.
Settlement administrator's mailing address: Twist Securities Settlement, c/o Claims Administrator, P.O. Box 25199, Santa Ana, CA 92799
Proof or documentation required to submit a claim
All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings, purchase and sale information, including:
- Number of shares held as of the opening of trading on Dec. 20, 2018
- Trade dates for each purchase and each sale listed chronologically
- Number of shares and the price per share for each purchase and each sale
- Total purchase price and total sale price, excluding commissions, taxes and fees
- Identification of any shares bought in the December 2020 offering
- Number of shares held as of the close of trading on Nov. 15, 2022, and as of the close of trading on Feb. 10, 2023
Class members must also provide documentation supporting their holdings and transactions in Twist common stock. Acceptable proof includes:
- Broker confirmation slips
- Stockbroker statements
- Other documentation adequately evidencing transactions in Twist common stock
$17 million settlement fund
The $17,050,000 settlement fund includes:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $4,262,500
- Attorneys' expenses: Up to $850,000
- Service award to plaintiff: Up to $10,000
- Payments to eligible class members: Remainder of the fund
Important dates
- Opt-out deadline: Oct. 7, 2026
- Deadline to file a claim: Nov. 17, 2026
- Fairness hearing: Nov. 18, 2026
When is the Twist Bioscience securities class action settlement payout date?
The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Twist Bioscience and certain executives made false and misleading statements about the company's production process, product quality and accounting. The plaintiff claimed those statements artificially inflated the price of Twist common stock and that corrective information released on Nov. 15, 2022, removed that inflation, causing losses for investors who bought at inflated prices.
The defendants denied all allegations of wrongdoing and liability and denied that class members suffered any loss attributable to their actions but agreed to settle to avoid the risks, costs and delays of continued litigation.
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