NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the Southern District of California on behalf of investors that purchased Sorrento Therapeutics, Inc. (NASDAQ: SRNE) common stock between May 15, 2020 and May 22, 2020 (the “Class Period”). Investors have until July 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On May 15, 2020, Sorrento announced that it had discovered an antibody that had “demonstrated 100% inhibition of SARS-CoV-2 virus infection.” On that same day, Defendant Henry Ji, founder and Chief Executive Officer of Sorrento referred to Sorrento’s breakthrough as a “cure.”
On this news, Sorrento shares increased $4.14 to close at $6.76 on May 15, 2020. The stock continued to increase after hours and opened at $9.98 on May 18, 2020, trading at a high of $10.00 that same day, which represented an increase of 281.7% from the May 14, 2020 closing price.
On May 20, 2020, Hindenburg Research issued a report doubting the validity of Sorrento’s claims and calling them “sensational,” “nonsense” and “too good to be true.”
On this news, Sorrento shares closed at $5.70 per share on May 20, 2020, representing a decline of $4.30, or 43.0%, from the Class Period high.
Finally, on May 22, 2020, BioSpace published an article stating that in a May 21, 2020 interview with Defendants Ji and Brunswick, Ji “insist[ed] that they did not say it was a cure.”
On this news, Sorrento shares closed at $5.07 per share on May 22, 2020, representing a decline of $4.93, or 49.4%, from the Class Period high.
The complaint, filed on May 26, 2020, alleges that Sorrento failed to disclose that: (i) 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; (ii) the Company’s finding was not a “cure” for COVID-19; and (iii) as a result of the foregoing, the lawsuit alleges that Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis in violation of Section 10(b) of the Securities Exchange Act of 1934.
If you purchased Sorrento common stock during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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