A California investor lawsuit filed in Los Angeles County over allegedly misleading statements relating to a $240 million IPO has been moved to federal court in the Central District of California. The lawsuit concerns the July 2015 initial public offering of shares in NantKwest, a cancer treatment company.
The case was filed by investor Craig Wiencek, who accused defendants Cambridge Equities LP and MP 13 of misleading investors, and accusing NantKwest CEO Soon-Shiong, who controls Cambridge Equities and MP 13, of failing to disclose material defects in NantKwest’s internal financial controls before the initial public offering.
A separate putative class action was filed against NantKwest in Los Angeles County court, alleging that investment firms Citigroup and Merrill Lynch, as well as others involved with the IPO, had overstated NantKwest’s financial prospects, leading to a dramatic drop in stock price. In that lawsuit, NantKwest was accused of negligence in preparing its IPO registration statement and that its underwriters failed to properly investigate the company.
The company’s stock price dropped from $25 to $7.
Call a Los Angeles Stock Fraud Attorney Today
If you invested NantKwest, Cambridge Equities, or MP 13, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles stock fraud attorney today for a consultation to discuss your rights and options.