Sorrento Therapeutics Sued by Investor Over Covid-19 Cure Claims

July 27, 2021, 8:42 PM

A Sorrento Therapeutics Inc. investor sued its CEO in Delaware on Tuesday, accusing the company of dealing with a cash crunch last year by selling $67 million worth of stock at inflated prices while hyping the “outlandish claim” that one of its experimental treatments could cure Covid-19.

“As should be expected from the claim of having a miracle cure that could solve the worst health crisis in a century, Sorrento’s stock price jumped on this news,” but it “fell back to earth” when Sorrento’s leaders began backtracking, sticking shareholders with losses, the complaint says.

The lawsuit, filed in Delaware Chancery ...

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