Key Takeaways:
- A class-action lawsuit has been filed against ImmunityBio (IBRX).
- The suit follows an FDA warning over misleading claims for its cancer therapy Anktiva.
- The news caused the company's stock to fall 21% on March 24.
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ImmunityBio faces lawsuit after FDA warning sparks 21% stock drop
A securities class action lawsuit was filed against ImmunityBio Inc. after an FDA warning over marketing claims for its cancer therapy caused the stock to fall 21 percent.
The lawsuit alleges that "defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that... defendant Patrick Soon-Shiong materially overstated Anktiva's capabilities," according to a statement from The Rosen Law Firm, one of the firms that filed a suit.
The legal action follows a U.S. Food and Drug Administration warning letter made public March 24, which stated a company television advertisement and podcast misrepresented the drug Anktiva. The violations, per the FDA, were "concerning from a public health perspective." On the news, ImmunityBio's shares fell $1.98 to close at $7.42.
The lawsuit applies to investors who purchased shares between January 19 and March 24, 2026, with a lead plaintiff deadline of May 26, 2026. The legal battle introduces significant uncertainty and potential financial liabilities for the company, which is developing treatments for cancer and infectious diseases.
The core of the FDA's concern was that promotional materials created a "misleading impression that Anktiva, a treatment for a certain type of bladder cancer, can cure and even prevent all cancer," according to the letter. This overstatement of the therapy's approved capabilities forms the basis of the securities fraud allegation.
Multiple law firms, including Kahn Swick & Foti, LLC, and ClaimsFiler, have issued notices reminding investors of the deadline. The case, Douglas v. ImmunityBio, Inc., et al., is pending in the United States District Court for the Central District of California.
The stock's sharp decline reflects investor concern over both the regulatory scrutiny and the potential for damages from the lawsuit. ImmunityBio's next catalyst will likely be its formal response to the lawsuit and any further updates from the FDA.
This article is for informational purposes only and does not constitute investment advice.
[1] ImmunityBio, Inc. Securities Fraud Class Action Result of FDA Warning and 21% Stock Decline - Investors may Contact Lewis Kahn, Esq, at Kahn Swick & Foti, LLC[2] ImmunityBio, Inc. Deadline: IBRX Investors with Losses in Excess of $100K Have Opportunity to Lead ImmunityBio, Inc. Securities Fraud Lawsuit First Filed by The Rosen Law Firm[3] ImmunityBio: Looking Beyond Bladder Cancer To A Multibillion-Dollar Solid Tumor TAM[4] ...With Losses In Excess Of $100,000 Of Lead Plaintiff Deadline In Class Action...[5] IBRX stock’s decline makes retail see ‘incredible’ buying opportunity after Anktiva + BCG therapy delivered favorable results
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