COVID-19 drug and vaccine developer Sorrento Therapeutics Inc (NASDAQ: SRNE) is filing for bankruptcy following a lengthy legal dispute.
The biotech submitted its Chapter 11 filing, per an SEC filing, after losing an arbitration battle to billionaire Patrick Soon-Shiong’s NantPharma LLC in December 2022.
The filing comes after a court ruling upheld a decision of the American Arbitration Association to award millions of dollars in damages related to a legal dispute with NantCell and NANTibody.
In April 2019, Sorrento filed an action in the Los Angeles Superior Court derivatively on behalf of Immunotherapy NANTibody LLC against NantCell Inc and Patrick Soon-Shiong, among others, related to several breaches in June 2015.
The parties are currently engaged in discovery in the Derivative Action, with a jury trial likely in 2023. In 2020, the company additionally filed a legal action against Patrick Soon-Shiong in the Court, asserting claims for fraudulent inducement and common law fraud, alleging that, among other things, Dr. Soon-Shiong acquired the drug Cynviloq to halt its progression to the market.
The arbitrator awarded NantCell nearly $156.8 million and NANTibody close to $17 million.
In December 2022, the arbitrator in the Cynviloq Arbitration issued an award granting contractual damages of $125 million to the company, reflecting the value of lost milestone payments for the approval of Cynviloq for breast and lung cancer.
Price Action: SRNE shares are down 55.60% at $0.42 on the last check Monday.
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This article Sorrento Therapeutics Stock Nosedives After Filing Bankruptcy Paperwork originally appeared on Benzinga.com
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