Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
The Ginkgo Bioworks (NYSE: DNA) stock price plummeted 20% shortly after activist short-seller Scorpion Capital released a brief report denouncing the company as a “colossal scam”.
Followers of the short-selling, investigative-based Scorpion Capital would have witnessed a flash sell-off earlier, attacking Ginko Bioworks for its dubious practices, suggesting the entire company is a fraud and thereby issuing a large-scale warning for anyone holding monetary interests.
Scorpion Capital’s 175-page report spared the niceties, describing the business as a “shell game” and identifying Ginkgo as “The US version of ‘The China Hustle’”. Investors were immediately warned, sparking the knife-edge 20% drop just moments later.
Following the report, Ginkgo is currently under investigation by the law firm Block & Leviton to confirm or disprove the presence of any securities law violations; accused of depending on related party transaction revenues. It has been recommended that anyone who has lost money through Gingko should contact Block & Leviton for further information.
Ginkgo stock has seen remarkable gains since the biotech company went public in September this year – reaching highs of $13.29. The current Ginkgo stock price is $9.61 following the flash short. We can only wait and see what the results of the investigation expose, but investor feelings have been made abundantly clear.
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