NEW YORK, May 26, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that it has filed a class action lawsuit in the U.S. District Court for the Southern District of California on behalf of those who acquired Sorrento Therapeutics, Inc. (“Sorrento” or the “Company”) (NASDAQ: SRNE) securities during the period from May 15, 2020 through May 22, 2020 (the “Class Period”). Investors have until July 27, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Sorrento failed to disclose that: (i) 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; (ii) the Company’s finding was not a “cure” for COVID-19; and (ii) as a result of the foregoing, the lawsuit alleges that Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis in violation of section 10(b) of the Securities Exchange Act of 1934.
On May 15, 2020, Sorrento announced that it had discovered an antibody that had “demonstrated 100% inhibition of SARS-CoV-2 virus infection.” On that same day, Defendant Henry Ji, founder and Chief Executive Officer of Sorrento referred to Sorrento’s breakthrough as a “cure.” On this news, Sorrento shares increased $4.14 to close at $6.76 on May 15, 2020. The stock continued to increase after hours and opened at $9.98 on May 18, 2020, trading at a high of $10.00 that same day, which represented an increase of 281.7% from the May 14, 2020 closing price.
On May 20, 2020, Hindenburg Research issued a report doubting the validity of Sorrento’s claims and calling them “sensational,” “nonsense” and “too good to be true.” On this news, Sorrento shares closed at $5.70 per share on May 20, 2020, representing a decline of $4.30, or 43.0%, from the Class Period high.
Finally, on May 22, 2020, BioSpace published an article stating that in a May 21, 2020 interview with Defendants Ji and Brunswick, Ji “insist[ed] that they did not say it was a cure.” On this news, Sorrento shares closed at $5.07 per share on May 22, 2020, representing a decline of $4.93, or 49.4%, from the Class Period high.
If you acquired Sorrento securities, have information, or would like to learn more about these claims, please contact Jesse Claflin of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Jesse Claflin
(212) 371-6600
investigations@kmllp.com
www.kmllp.com
