Federman & Sherwood Announces the Filing of a Securities Class Action
Lawsuit against NantKwest, Inc.
Oklahoma City, OK (March 25, 2016) – On March 22, 2016, a securities class action lawsuit was filed in the United States District Court for the Central District of California against NantKwest, Inc. (NASDAQ: NK). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is September 10, 2015 through March 10, 2016. More specifically, this litigation was filed because the Company made false and/or misleading statements and/or failed to disclose that: (i) the Company’s financial statements contained errors related to stock-based awards to the Company’s Chief Executive Officer and Executive Chairman defendant Patrick Soon-Shiong (“Soon-Shiong”); (ii) the Company’s financial statements contained errors related to build-to-suit lease accounting related to one of the Company’s research and development and good manufacturing practices (“GMP”) facilities; (iii) the Company lacked effective internal financial controls; and (iv) as a result of the foregoing, NantKwest’s public statements were materially false and misleading at all relevant times.
On January 25, 2016, the Company announced the resignation of its Chief Financial Officer ("CFO"), who had just joined the Company in November 2015. On this news, the Company’s shares declined to close at $11.99 per share on January 26, 2016.
On March 11, 2016, the Company announced that its interim financial statements for the quarters ended June 30, 2015 and September 30, 2015 should no longer be relied upon due, in part, to the combined effect of financial statement errors primarily attributable to certain stock-based awards to defendant Soon-Shiong and build-to-suit lease accounting related to one of its research and development and GMP facilities. On this news, the Company’s stock fell $0.28, to close at $8.17 on March 11, 2016.
Plaintiff seeks to recover damages on behalf of all NantKwest, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, May 23, 2016 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Fri, March 25, 2016
by Robin Hester filed under