ImmunityBio Faces Securities Fraud Suit Over FDA License Denial

ImmunityBio Inc. was hit with a proposed class action over a drop in its stock price following news that the US Food and Drug Administration rejected a license application because of manufacturing deficiencies.

The biotechnology company and three of its executives allegedly made misleading statements or omissions about its manufacturing processes at third-party facilities for its Anktiva therapy and overstated regulatory approval prospects for the treatment, according to the suit filed in the US District Court for the Southern District of California on June 30.

The proposed class includes people who bought ImmunityBio securities between May 23, 2022—when the company ...