According to the law firm press release, NantKwest, a biotechnology company, develops immunotherapeutic agents for various clinical conditions. The Company also holds right to commercialize a range of genetically modified derivatives that kills cancer and virally infected cells.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) NantKwest’s financial statements contained errors related to stock-based awards to the Company’s Chief Executive Officer and Executive Chairman; (ii) NantKwest’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 March 11, 2016, NantKwest announced that the Company’s 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 and build-to-suit lease accounting related to one of its research and development and GMP facilities.
On this news, NantKwest stock fell $0.28, or 3.31%, to close at $8.17 on March 11, 2016.
On June 14, 2016, the Court appointed Lead Plaintiff and counsel. Lead Plaintiff filed a consolidated complaint on August 4, 2016.