Key Takeaways:
ImmunityBio Inc. (IBRX) faces a securities fraud class-action lawsuit after its shares plummeted 21.12% on March 24, following a US Food and Drug Administration warning over "misleading" claims about its cancer treatment, Anktiva.
"FDA has determined that the TV ad and podcast are false or misleading," the agency wrote in a warning letter publicized on March 24. The letter added that the promotions "grossly misrepresent the benefits of Anktiva."
The lawsuit alleges that during the class period of January 19 to March 24, 2026, ImmunityBio and its Executive Chairman, Patrick Soon-Shiong, made false statements, including that Anktiva could "cure and even prevent all cancer." On the news of the FDA letter, the company's stock fell $1.98 to close at $7.42, erasing nearly $2 billion in market value.
The legal action, filed in the US District Court for the Central District of California, exposes the company to significant potential liabilities. Multiple law firms are now calling for investors who suffered substantial losses to seek appointment as lead plaintiff before the May 26, 2026, deadline.
The controversy centers on promotional materials for Anktiva, an FDA-approved immunotherapy for a specific type of bladder cancer. According to the FDA's letter, a podcast aired on January 19 featured Soon-Shiong making claims that went far beyond the drug's approved use. The agency stated the promotional materials "create the misleading impression that Anktiva, a treatment for a certain type of bladder cancer, can cure and even prevent all cancer."
The class-action complaint argues these statements were materially false and misleading, artificially inflating the company's stock price. The lawsuit seeks to recover damages for investors who purchased ImmunityBio securities during the two-month period.
The lawsuits compound the regulatory pressure on ImmunityBio, creating significant uncertainty for investors. The outcome of the lead plaintiff selection on May 26 will be the next key development in the legal battle.
This article is for informational purposes only and does not constitute investment advice.
