Mounting Legal Challenges Confront ImmunityBio Over Drug Claims

Investor class actions allege ImmunityBio overstated Anktiva's efficacy, triggered by an FDA warning letter. The stock plunged over 21%, erasing $2B in value.

A formal warning from U.S. regulators has triggered a surge of investor lawsuits against biotechnology firm ImmunityBio. Multiple law firms have initiated class actions, alleging the company systematically overstated the efficacy of its cancer drug, Anktiva. The legal actions began accumulating from March 24, 2026.

Regulatory Warning Sparks Investor Backlash

The sequence of events traces back to a January 19, 2026, podcast appearance by founder Patrick Soon-Shiong. Titled “Is the FDA BLOCKING Life Saving Cancer Treatments?”, the segment featured statements about Anktiva that the Food and Drug Administration later classified as “false or misleading.” The agency’s primary objection was that promotional materials created an impression that Anktiva—approved for a specific form of bladder cancer—could cure and even prevent all types of cancer.

This FDA warning letter, dated March 13, 2026, was made public on March 24. The market reaction was severe: ImmunityBio’s share price plummeted more than 21% in a single day, wiping out nearly $2 billion in market capitalization.

Legal Firms Rally Investors for Action

Several prominent law firms are now pursuing cases on behalf of shareholders. The Rosen Law Firm has filed a class action for investors who held securities between January 19 and March 24, 2026. Similarly, The Schall Law Firm and Kahn Swick & Foti have notified investors of a May 26, 2026, deadline to petition the court for lead plaintiff status in the litigation. All cases are consolidated in the U.S. District Court for the Central District of California.

The core allegation unifying the suits is that Soon-Shiong materially exaggerated Anktiva’s capabilities when communicating with the investment community.

Operational Progress Overshadowed by Legal Woes

Despite the legal turmoil, ImmunityBio continues to advance its clinical pipeline. On March 9, 2026, the company submitted a supplemental Biologics License Application (BLA) to the FDA for Anktiva in combination with BCG for a specific bladder cancer indication. The agency acknowledged the submission without requiring new clinical studies. Furthermore, Anktiva was recently added to the National Comprehensive Cancer Network (NCCN) guidelines for bladder cancer. The company’s latest quarterly report, released February 23, showed a loss per share of $0.06, beating the consensus estimate of a $0.08 loss.

These developments have failed to lift the equity’s performance. Since the initial sell-off, the stock has declined an additional 6.9%, recently trading at $7.14. This represents a 30-day drop of 21.8%. The mounting legal risk is thus eclipsing a period when Anktiva was poised to gain commercial momentum.