SAN DIEGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that it is investigating Sorrento Therapeutics, Inc. (NASDAQ: SRNE) for alleged violations of the Securities Exchange Act of 1934 and whether the Company's officers and directors breached their fiduciary duties to shareholders. 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 Investors
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%." 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.
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