What Went Wrong With ImmunityBio’s Executives Claims — and How Investors Could Still Win

Court: S.D. California

Case: 23-CV-01216

ImmunityBio IBRX has agreed to a $10.5 million settlement with investors who accused founder Patrick Soon-Shiong, CEO Richard Adcock, and CFO David Sachs of misleading them about the company’s manufacturing capabilities, FDA compliance, and approval prospects for its cancer therapy Anktiva in 2023.

This agreement represents the close of a turbulent chapter marked by bold promises, regulatory setbacks, and serious doubts about executive leadership.

How Leadership Lapses Fueled the Crisis

ImmunityBio’s leadership told investors that the company was on track to bring Anktiva — its flagship immunotherapy — to market. Executives emphasized strong progress toward FDA approval and claimed that manufacturing capacity was ready to scale. Soon-Shiong himself reassured that the company had “built a strong foundation to deliver Anktiva to patients worldwide.”

However, in May 2023, the FDA rejected the company’s Biologics License Application for Anktiva, citing manufacturing and compliance deficiencies, exposing years of overstatements about readiness, and left investors questioning whether executives had downplayed the risks.

At that point, executives continued to highlight positive trial data and insisted approval was imminent. One former employee described the situation bluntly: “They kept telling the market everything was ready when we all knew the facilities weren’t compliant.”

Investors Call Out the Storyline

For a time, ImmunityBio’s stock rode high on the back of its promises. But when the FDA rejection became public in May 2023, shares plummeted more than 50% in a single day.

In the wake of this collapse, investors filed a lawsuit accusing the company and its executives of making false statements to inflate ImmunityBio’s stock price. They alleged that ImmunityBio had “no reasonable basis to represent that Anktiva was approvable” given its unresolved deficiencies.

This fallout cemented Soon-Shiong’s reputation as a visionary but controversial figure whose optimistic narrative could not hide operational shortcomings.

A Deal to Compensate Shareholders

Now, ImmunityBio has agreed to a $10.5 million settlement to resolve investor claims. While the company and its executives did not admit wrongdoing, the settlement provides a path for shareholders to recover part of their losses.

If you purchased IBRX, even though the original deadline has passed, late claims are still being accepted. You can check eligibility and submit your claim here.