Pomerantz LLP, a leading law firm specializing in securities litigation, has announced the filing of a class action lawsuit against ImmunityBio, Inc. and certain officers. The lawsuit, filed in the United States District Court for the Southern District of California, alleges violations of federal securities laws during the Class Period, seeking damages and remedies on behalf of shareholders. This article provides an overview of the class action lawsuit against ImmunityBio and the allegations made against ImmunityBio.

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Background on ImmunityBio

ImmunityBio is a clinical-stage biotechnology company that focuses on the development of innovative therapies and vaccines to combat cancers and infectious diseases in the U.S. and Europe. ImmunityBio's immunotherapy and cell therapy platforms, including the antibody cytokine fusion protein N-803, known as "Anktiva," have shown promise in harnessing and amplifying the immune system. ImmunityBio relies on third-party contract manufacturing organizations (CMOs) for the production of certain product candidates, including Anktiva.

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Allegations of Misleading Statements

The class action complaint alleges that throughout the Class Period (May 23, 2022, to May 10, 2023), ImmunityBio and its top officials made false and misleading statements regarding ImmunityBio's business, operations, and prospects. The complaint asserts that ImmunityBio conducted inadequate due diligence to identify or address Good Manufacturing Practice (GMP) deficiencies at its third-party CMOs for Anktiva. It further alleges that one or more of the CMOs did indeed suffer from GMP deficiencies, which were likely to lead to the rejection of the Anktiva Biologics License Application (BLA) by the FDA. Consequently, ImmunityBio  is accused of overstating the regulatory approval prospects for Anktiva, rendering its public statements materially false and misleading.

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FDA Rejection and Stock Price Plunge

On May 11, 2023, ImmunityBio disclosed that the FDA had rejected the BLA for Anktiva in its present form due to deficiencies observed during the FDA's pre-license inspection of ImmunityBio's third-party CMOs. The announcement sent shockwaves through the market, resulting in a substantial decline in ImmunityBio's stock price. The stock plummeted by $3.43 per share, or 55.14%, to close at $2.79 per share on May 11, 2023.

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Class Action Lawsuit and Seeking Lead Plaintiff

Investors who purchased or acquired ImmunityBio securities between May 23, 2022, and May 10, 2023, may be eligible to join the class action lawsuit. The deadline for shareholders to request to be appointed as Lead Plaintiff is August 29, 2023. To obtain a copy of the Complaint or discuss the lawsuit further, interested parties can visit the website www.pomerantzlaw.com or reach out to Robert S. Willoughby at newaction@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. When contacting via email, it is encouraged to include the mailing address, telephone number, and the number of shares purchased.