BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased of Sorrento Therapeutics, Inc. ("Sorrento" or the "Company") (NASDAQ: SRNE) common stock between May 15, 2020 and May 22, 2020, inclusive (the “Class Period”). Sorrento investors have until July 27, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Sorrento investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On May 15, 2020, the Company announced that it had discovered an antibody which “demonstrated 100% inhibition of SARS-CoV-2 virus infection” and which Sorrento’s CEO called a “cure.”
On this news, Sorrento’s share price rose more than 280%.
Then, on May 20, 2020, Hindenburg Research calling the Company’s claims “too good to be true.” In a report citing former Sorrento employees, Hindenburg Research alleged that it was “too early” to tell whether the Company had found a cure and that "Sorrento's actions are manipulative at the worst possible time and simply amount to an attempt to shamelessly profiteer off the pandemic."
On this new, the Company’s share price fell $0.67 per share, or over 11%, to close at $5.03 per share on May 21, 2020.
Then, on May 22, 2020, BioSpace published an article in which Sorrento’s CEO “insist[ed] that [he] did not say it was a cure.”
The complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose: (1) that 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.
If you purchased Sorrento common stock, have information or 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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