Haeggquist & Eck Investigates NantKwest for Misrepresenting Compensation to CEO by $49 Million and Breach of Fiduciary
Duty
Haeggquist & Eck, LLP, a shareholder rights litigation firm, has launched an investigation into possible
breaches of fiduciary duty and other violations of state law by certain members of NantKwest Inc.’s (NASDAQ: NK) board of directors. NantKwest is a San Diego-based cancer immunotherapy company
that focuses on attempting to harness “natural killer” cells generated by the body’s immune system to treat cancer, infectious
diseases, and inflammatory diseases.
NantKwest’s stock price plummeted over 74% since the company’s July 28, 2015 IPO, making it the second worst performing
biotechnology or pharmaceutical company that went public in 2015. Nonetheless, NantKwest paid its CEO Patrick Soon-Shiong more in
compensation than all other executives tracked by Bloomberg in 2015 -- in fact, over $150 million more than the CEOs of even the
largest most successful technology companies, like Sundar Pichai of Google or Elon Musk of Tesla.
In addition, NantKwest misstated the amount of compensation it gave to Soon-Shiong by approximately $49 million in its first
two earnings reports after the IPO. NantKwest was accordingly forced to restate its financial results for the second and third
quarters of 2015. These undisclosed expenses dramatically impacted NantKwest’s financial condition and caused its stock price to
plummet.
Haeggquist & Eck’s investigation focuses on whether certain members of NantKwest’s Board of Directors breached their
fiduciary duties. A securities fraud lawsuit is currently pending against the Company, Soon-Shiong, and members of the NantKwest
Board in the United States District Court for the Central District of California.
NantKwest Shareholders Have Legal Options
Concerned NantKwest shareholders who would like more information about potential remedies for the alleged misconduct,
including remedies to the Company from the alleged misconduct of its executives and/or directors, may contact attorneys Amber Eck or Kathleen Herkenhoff at 619-342-8000, ambere@haelaw.com or
kathleenh@haelaw.com.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents
individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1
billion of value for themselves and the companies in which they have invested.
This release constitutes attorney advertising. Past results do not guarantee a similar outcome.
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Haeggquist & Eck, LLP
619-342-8000
Amber Eck, ambere@haelaw.com
Kathleen Herkenhoff, kathleenh@haelaw.com
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