NEW YORK, May 27, 2020 (GLOBE NEWSWIRE) -- Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international shareholder and consumer rights litigation firm, announces the filing of a class action lawsuit against Sorrento Therapeutics, Inc. (“Sorrento” or the “Company”) (NASDAQ: SRNE) and certain of its officers and directors alleging violations of federal securities laws. If you purchased Sorrento securities between May 15, 2020 and May 22, 2020, inclusive (the “Class Period”), you are encouraged to contact Scott+Scott attorney Joe Pettigrew for additional information at (844) 818-6982 or jpettigrew@scott-scott.com.
Sorrento is a biopharmaceutical company that researches human therapeutic antibodies for the treatment of cancer, inflammation, and metabolic and infectious diseases. On May 8, 2020, Sorrento announced a collaboration with Mount Sinai Health System for the purpose of “generat[ing] antibody products that would act as a ‘protective shield’ against SARS-CoV-2 coronavirus infection, potentially blocking and neutralizing the activity of the virus in naive at-risk populations as well as recently infected individuals.”
The Complaint alleges that Sorrento made materially false and/or misleading statements and/or failed to disclose that: (1) the Company’s initial finding of “100% inhibition” in an in vitro virus infection will not necessarily translate to success or safety in vivo, or in person; (2) the Company’s finding was not a “cure” for COVID-19; and (3) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
On May 15, 2020, Sorrento’s founder and CEO, Henry Ji (“Ji”), announced that the Company had discovered an antibody that had “demonstrated 100% inhibition of SARS-CoV-2 virus infection” and on that same day told Fox News that “there is a cure.”
On this news Sorrento shares increased $4.14 to close at $6.76 on May 15, and traded as high as $10.00 per share the next day, a 281.7% increase from the May 14, 2020 closing price.
On May 20, 2020 the Hindenburg Report issued a report doubting the validity of Sorrento’s claims and calling them “sensational,” “nonsense,” and “too good to be true.” The Hindenburg report also quoted experts doubting the validity of Sorrento’s claims, and doubting that Sorrento’s antibody was even the most viable antibody candidate for an effective vaccine.
On this news Sorrento shares closed at $5.70, down 43% from the class-period high of $10.00.
On May 22, 2020, BioSpace published an article discussing a May 21, 2020 interview with Ji in which Ji “insist[ed] that they did not say [Sorrento’s newly-discovered antibody] was a cure.”
On this news Sorrento shares closed at $5.07 per share on May, 22, 2020, a decline of $4.93, or 49.3% from the class-period high.
What You Can Do
If you purchased Sorrento securities between May 15, 2020 and May 22, 2020, or if you have questions about this notice or your legal rights, you are encouraged to contact attorney Joe Pettigrew at (844) 818-6982 or jpettigrew@scott-scott.com. The lead plaintiff deadline is July 27, 2020.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.
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CONTACT:
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
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(844) 818-6982
jpettigrew@scott-scott.com