ImmunityBio, Inc. is facing a class-action lawsuit from investors after a U.S. Food and Drug Administration warning letter over promotional claims for its cancer drug Anktiva triggered a 21 percent drop in its stock price.
"Defendant Soon-Shion, the Company’s Executive Chairman and Global Chief Scientific and Medical Officer, materially overstated Anktiva’s capabilities," the complaint filed by Bronstein, Gewirtz & Grossman alleges.
The lawsuit follows the publication of an FDA warning letter on March 24, 2026, which stated that a TV advertisement and podcast for Anktiva were "false or misleading." The agency noted the materials misleadingly suggested the bladder cancer treatment could cure or prevent all cancers, a concern it had raised with an ImmunityBio subsidiary in two previous letters.
The news caused ImmunityBio shares to close down 21 percent at $7.42 on March 24. The class period for the lawsuit covers investors who purchased the stock between January 19, 2026, and March 24, 2026, with a lead plaintiff deadline of May 26, 2026.
Multiple law firms, including Robbins Geller Rudman & Dowd LLP and Kaplan Fox & Kilsheimer LLP, have announced similar lawsuits, seeking to recover damages for investors. The core of the allegations is that the company and its executive chairman failed to disclose that claims about Anktiva's effectiveness were not sufficiently demonstrated.
The FDA's letter highlighted that the promotional communications "create a misleading impression" about the drug's approved use. This action puts the company's marketing practices under scrutiny and adds a layer of legal risk on top of the clinical and regulatory hurdles inherent in the biotechnology sector.
For investors, the lawsuit represents a significant headwind for the company, potentially leading to financial penalties and reputational damage. The May 26 lead plaintiff deadline is the next key date for investors seeking to participate in the class action.
This article is for informational purposes only and does not constitute investment advice.
