SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Sorrento Therapeutics, Inc. (NASDAQ: SRNE) filed a class action complaint against the Company for alleged violations of the Securities Exchange Act of 1934 between May 15, 2020, and May 22, 2020. Sorrento is a clinical stage biopharma company that develops therapies for cancer, autoimmune, inflammatory, and neurodegenerative diseases.
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Sorrento Therapeutics, Inc. (SRNE) Accused of Misleading Shareholders
According to the complaint, on May 15, 2020, Sorrento announced that it had discovered an antibody that had "demonstrated 100% inhibition of SARS-CoV-2 virus infection" and stated on national television "[Sorrento] want[s] to emphasize there is a cure." Following these auspicious statements, Sorrento's stock price soared to as high as $10.00 per share, representing a 281.7% increase from its May 14, 2020, closing price. However, on May 20, 2020, Hindenburg Research issued a report calling Sorrento's claims "sensational," "nonsense," and "too good to be true" after speaking with Mount Sinai, the company Sorrento was collaborating with, which cautioned that "nothing in medicine is 100%." In response, Sorrento's CEO refuted the Hindenburg report stating "when you see a virus is not infecting the healthy cell, you know you have the real deal." Finally, on May 22, 2020, BioSpace published an article revealing that in an interview on May 21, 2020, Sorrento's officers "insist[ed] that they did not say it was a cure" but rather that it could potentially be a cure. On this news, Sorrento's stock price fell to $4.93 per share, representing a 49.4% decline from its class period high of $10 per share.
If you purchased Sorrento Therapeutics, Inc. (SRNE) securities between May 15, 2020, and May 22, 2020, you have until July 27, 2020, to ask the court to be appointed lead plaintiff for the class.
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