Sorrento Therapeutics, Inc.
(NASDAQ CM: SRNE)
Rigrodsky Law, P.A. is investigating potential claims against the officers and directors of Sorrento Therapeutics, Inc. ("Sorrento") on behalf of stockholders. A class action complaint has been filed against Sorrento, which alleges that defendants' May 15, 2020 statements representing STI-1499 as: a "cure" for COVID-19; that STI-1499 could "100% completely prevent [or inhibit] infection"; a drug that would allow humans to "open up a society without fear"; a drug that as "[a]s soon as it is infused, that patient is now immune," and "[s]o, if we were approved [by the FDA] today, everyone who gets that antibody can go back to work and have no fear of catching COVID-19," were materially false and misleading. These statements were false and misleading when made because: (i) STI-1499 had not demonstrated efficacy in humans; (ii) STI-1499 had not demonstrated itself to be a cure for COVID-19 in humans; (iii) defendants possessed no data indicating that STI-1499 was or would be as effective in humans as it was purportedly shown to be in in vitro studies; and (iv) defendants had no data demonstrating that a person who was treated with STI-1499 would be at zero risk for a subsequent COVID-19 infection. Defendants' misleading statements and omissions of material facts had the intended effect and caused Sorrento's stock price to trade at artificially inflated prices. The disclosures during the early morning of May 20, 2020 had a direct impact on Sorrento's stock price. During the morning of May 20, 2020, the price of Sorrento's common stock fell 16.1%, from $5.42 per share to $4.55 per share.