Haeggquist & Eck Investigates NantKwest for Misrepresenting Compensation to CEO by $49 Million and Breach of Fiduciary Duty
July 27 2017 - 8:00AM
Business Wire
Haeggquist & Eck, LLP, a shareholder rights litigation firm,
has launched an investigation into possible breaches of fiduciary
duty and other violations of state law by certain members of
NantKwest Inc.’s (NASDAQ: NK) board of directors. NantKwest is a
San Diego-based cancer immunotherapy company that focuses on
attempting to harness “natural killer” cells generated by the
body’s immune system to treat cancer, infectious diseases, and
inflammatory diseases.
NantKwest’s stock price plummeted over 74% since the company’s
July 28, 2015 IPO, making it the second worst performing
biotechnology or pharmaceutical company that went public in 2015.
Nonetheless, NantKwest paid its CEO Patrick Soon-Shiong more in
compensation than all other executives tracked by Bloomberg in 2015
-- in fact, over $150 million more than the CEOs of even the
largest most successful technology companies, like Sundar Pichai of
Google or Elon Musk of Tesla.
In addition, NantKwest misstated the amount of compensation it
gave to Soon-Shiong by approximately $49 million in its first two
earnings reports after the IPO. NantKwest was accordingly forced to
restate its financial results for the second and third quarters of
2015. These undisclosed expenses dramatically impacted NantKwest’s
financial condition and caused its stock price to plummet.
Haeggquist & Eck’s investigation focuses on whether certain
members of NantKwest’s Board of Directors breached their fiduciary
duties. A securities fraud lawsuit is currently pending against the
Company, Soon-Shiong, and members of the NantKwest Board in the
United States District Court for the Central District of
California.
NantKwest Shareholders Have Legal Options
Concerned NantKwest shareholders who would like more information
about potential remedies for the alleged misconduct, including
remedies to the Company from the alleged misconduct of its
executives and/or directors, may contact attorneys Amber Eck or
Kathleen Herkenhoff at 619-342-8000, ambere@haelaw.com or
kathleenh@haelaw.com.
Haeggquist & Eck, LLP is a nationally recognized leader in
shareholder rights law. The firm represents individual investors in
shareholder derivative lawsuits, and members of the firm have
helped shareholders recover more than $1 billion of value for
themselves and the companies in which they have invested.
This release constitutes attorney advertising. Past results do
not guarantee a similar outcome.
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version on businesswire.com: http://www.businesswire.com/news/home/20170727005492/en/
Haeggquist & Eck, LLP619-342-8000Amber Eck,
ambere@haelaw.comKathleen Herkenhoff, kathleenh@haelaw.com
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