ImmunityBio $10.5 Million Settlement Over Record Selloff Gets OK

ImmunityBio Inc.'s $10.5 million agreement to settle an investor class action alleging misrepresentations about a cancer drug’s prospects warrants initial approval, a federal court ruled.

The settlement amount represents more than 8% of the $131 million in damages estimated by an expert for the investors, Judge Gonzalo P. Curiel said Monday for the US District Court for the Southern District of California. As a percentage of estimated damages, the amount “is well above the median percentage of the recovery level for investor losses in securities class action settlements,” Curiel said.

The investors allege the biotechnology company and three of its ...