LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.
If you are a shareholder who suffered a loss, click here to participate.
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.
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If you purchased Sorrento securities during the Class Period, you may move the Court no later than July 27, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Sorrento securities, 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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