Sorrento Therapeutics Announces That Its Unaudited Condensed Consolidated Financial Statements for The Three and Nine Months Ended September 30, 2017 Should No Longer Be Relied Upon
Kehoe Law Firm, P.C. is investigating claims on behalf of the investors of Sorrento Therapeutics, Inc. to determine whether Sorrento Therapeutics and certain of its officers or directors engaged in securities fraud or other unlawful business practices.
. . . Audit Committee of the Board of Directors (the “Audit Committee”) of Sorrento Therapeutics, Inc. . . . after discussion with [Sorrento’s] independent registered public accounting firm, concluded that [Sorrento’s] unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2017 should no longer be relied upon as a result of the conclusion by the Audit Committee that an other-than-temporary impairment in value had occurred in [Sorrento’s] equity method investment in Immunotherapy NANTibody, LLC (“NANTibody”) for the three and nine months ended September 30, 2017. In February 2018, NANTibody notified [Sorrento Therapeutics] that in July 2017 NANTibody acquired assets from a party related to its 60% owner, NantCell, Inc., for approximately $90 million cash. As a result, [Sorrento Therapeutics] reassessed the recoverability of its equity method investment in NANTibody and, on February 26, 2018, [Sorrento] and Audit Committee concluded that a previously unrecorded other-than-temporary impairment in value had occurred in its equity method investment in NANTibody as of September 30, 2017. The resulting impact on [Sorrento’s] 40% equity interest in NANTibody is a $36.0 million impairment on equity method investment in [Sorrento’s] condensed consolidated statement of operations for the three and nine months ended September 30, 2017. This impairment expense will not result in cash expenditures in past or future periods.
[Sorrento Therapeutics] will restate its unaudited condensed consolidated financial statements and other financial information contained in its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2017, filed with the Securities and Exchange Commission on November 9, 2017 (the “Form 10-Q”), to reflect the impact of the impairment in the value of [Sorrento’s] equity investment in NANTibody by filing an amendment to the Form 10-Q on or about February 26, 2018. (Emphasis added)
On this news, the stock price of Sorrento Therapeutics dropped during intraday trading on February 27, 2018, closing at $8.45, down 4.52% from SRNE’s previous close of $8.85.
Sorrento Therapeutics Investors and Shareholders
If you purchased, or otherwise acquired, SRNE stock shares and have questions or concerns about the securities investigation or your potential legal rights, please contact John A. Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], complete the form above on the right or e-mail [email protected].