SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that a class action lawsuit has been filed in the Southern District of California on behalf of purchasers of Sorrento Therapeutics, Inc. (NASDAQ:SRNE) common stock between May 15, 2020 and May 22, 2020 (the “Class Period”). The case is captioned Wasa Medical Holdings v. Sorrento Therapeutics, Inc., No. 20-cv-00966, and is assigned to Judge Battaglia. The Sorrento Therapeutics class action lawsuit charges Sorrento Therapeutics and two of its officers with violations of the Securities Exchange Act of 1934.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Sorrento Therapeutics common stock during the Class Period to seek appointment as lead plaintiff in the Sorrento Therapeutics class action lawsuit. A lead plaintiff acts on behalf of all other class members in directing the Sorrento Therapeutics class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Sorrento Therapeutics class action lawsuit. An investor’s ability to share in any potential future recovery of the Sorrento Therapeutics class action lawsuit is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff of the Sorrento Therapeutics class action lawsuit or have questions concerning your rights regarding the Sorrento Therapeutics class action lawsuit, please provide your information here or contact counsel, Michael Albert of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. Lead plaintiff motions for the Sorrento Therapeutics class action lawsuit must be filed with the court no later than July 27, 2020.
Sorrento Therapeutics is a biopharmaceutical company. On May 8, 2020, Sorrento Therapeutics 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 naïve at-risk populations as well as recently infected individuals.”
On May 15, 2020, Sorrento Therapeutics announced that it had discovered an antibody that had “demonstrated 100% inhibition of SARS-CoV-2 virus infection.” On that same day, Sorrento Therapeutics’ founder and Chief Executive Officer, defendant Henry Ji, referred to the Company’s discovery as a “cure.” The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s purported “cure” for COVID-19, including that the Company’s initial finding of “100% inhibition” in an in vitro virus infection would not necessarily translate to success or safety in vivo, or in person, and that it was not a “cure” for COVID-19. As a result of defendants’ false statements and/or omissions, the price of Sorrento Therapeutics stock was artificially inflated to an intraday high of $10 per share during the Class Period.
On May 20, 2020, Hindenburg Research issued a report questioning the validity of Sorrento Therapeutics’ claims and calling them “sensational,” “nonsense,” and “too good to be true.” Hindenburg spoke with researchers at Mount Sinai who stated that Sorrento Therapeutics’ announcement was “very hyped” and that “nothing in medicine is 100%.” However, that same day, defendant Ji appeared on Yahoo! Finance to rebut Hindenburg’s report, stating that “investor[s] suspecting . . . another pump and dump” were wrong and that, “when you see a virus is not infecting the healthy cell, you know you have the real deal” and “eventually the market [will] catch up.”
Then, on May 22, 2020, BioSpace published an article stating that in a May 21, 2020 interview with defendant Ji and Mark R. Brunswick, Sorrento Therapeutics’ Vice President of Regulatory Affairs and Quality, defendant Ji “insist[ed] that they did not say it was a cure.” The price of Sorrento Therapeutics’ stock fell to a close of $5.07 per share on May 22, 2020, representing a decline of approximately 49% from the stock’s $10 per share Class Period intraday high.
Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation. Robbins Geller has over 200 lawyers in 9 offices, with its headquarters in San Diego, just three blocks away from the Edward J. Schwartz U.S. Courthouse where the Sorrento Therapeutics class action lawsuit is pending.
Robbins Geller has obtained many of the largest securities class action recoveries in history. For seven consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Robbins Geller attorneys are consistently recognized by courts, professional organizations, and the media as leading lawyers in the industry. Please visit http://www.rgrdlaw.com for more information.