ImmunityBio Investors Face May Deadline as Legal and Financial Paths Diverge

ImmunityBio shareholders face a May 26 deadline to lead a securities fraud lawsuit after FDA rebuke over cancer cure claims erased $2B in value, despite the drug's strong commercial growth.

A critical deadline is approaching for shareholders of ImmunityBio. Investors who purchased stock between January 19 and March 24, 2026, have until May 26 to apply for the lead plaintiff role in a securities fraud class action. The lawsuit stems from a regulatory rebuke that erased nearly $2 billion in market value in a single day.

The company’s troubles began when the U.S. Food and Drug Administration issued a warning letter concerning promotional materials for its flagship drug, ANKTIVA. The agency singled out a podcast featuring Executive Chairman Patrick Soon-Shiong, where he claimed the therapy could "cure and even prevent all cancers." The FDA labeled these statements false or misleading, noting long-term cures for all patients were unproven. ANKTIVA is approved for a specific form of bladder cancer.

On March 24, the news broke publicly via a Bloomberg report. The market reaction was swift and severe: ImmunityBio’s share price plummeted over 21%, a drop of roughly $1.98 per share.

In response, the biotech firm moved to contain the damage. On April 6, ImmunityBio submitted a comprehensive response to the FDA. The company removed the controversial podcast, confirmed a related TV spot had never aired, and announced tightened internal controls alongside external regulatory oversight.

Despite the legal turmoil, ImmunityBio’s commercial performance tells a different story. Preliminary figures for the first quarter of 2026 reveal explosive growth. Net product revenue reached approximately $44.2 million, a staggering 168% increase year-over-year and a sequential gain of 15% from the fourth quarter of 2025. This continues a remarkable trajectory; full-year 2025 revenue hit $113 million, representing 700% growth from 2024.

Financially, the company appears robust, with an estimated $380.9 million in cash and securities on hand at the end of Q1 2026. ANKTIVA is now approved for use in 34 countries.

The legal front, however, continues to intensify. Law firms Levi & Korsinsky and Glancy Prongay Wolke & Rotter are actively recruiting affected investors. Levi & Korsinsky filed a new class action on April 15, adding to the pressure. The core allegation is that management materially overstated ANKTIVA's capabilities, deliberately misleading the market.

This creates a stark dichotomy for ImmunityBio. Its stock has gained an impressive 261% year-to-date, yet it has shed 13% over the past 30 days as legal risks crystallize. The company’s fortunes remain heavily tied to a single product, amplifying both its commercial potential and its vulnerability.

All eyes now turn to a California court, which will review investor applications after the May 26 cutoff. The appointed lead plaintiff will steer the litigation strategy against ImmunityBio, setting the tone for a legal battle that shadows its commercial ascent.