NEW YORK - (NewMediaWire) - July 17, 2020 - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Sorrento Therapeutics, Inc. (“Sorrento” or the “Company”) (NASDAQ:SRNE) of the July 27, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Sorrento stock or options between May 15, 2020 and May 22, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/SRNE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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The lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of all those who purchased Sorrento common stock between May 15, 2020 and May 22, 2020 (the “Class Period”). The case, Wasa Medical Holdings v. Sorrento Therapeutics, Inc. et al., No. 3:20-cv-00966 was filed on May 26, 2020, and has been assigned to Judge Anthony J. Battaglia.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) 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; and (2) the Company’s finding was not a “cure” for COVID-19.
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.
Then, on May 20, 2020, Hindenburg Research issued a report doubting the validity of Sorrento’s claims that it had discovered an antibody demonstrating "100% inhibition of SARS-CoV-2 virus infection,” 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.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Sorrento’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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