ImmunityBio Faces Class Action Lawsuit Over Misleading Cancer Treatment Claims, Shares Plummet

ImmunityBio Under Fire: Class Action Lawsuit and a Plummeting Market

ImmunityBio, Inc., trading under NASDAQ symbol IBRX, is facing serious legal challenges after the FDA flagged potentially misleading claims regarding its lead cancer treatment, Anktiva. As of March 24, 2026, the company's stock value dropped by over 21%, wiping out nearly $2 billion from its market capitalization. This striking decline has prompted a securities class action lawsuit, marking a pivotal moment for the company and its investors.

Background on ImmunityBio and Anktiva

ImmunityBio is a biotechnology firm primarily focused on the innovation and commercialization of next-generation immunotherapies aimed at activating patients’ immune responses against cancer and infectious diseases. Anktiva, the company’s flagship product, is FDA-approved for treating non-muscle invasive bladder cancer (NMIBC) but has come under scrutiny regarding the validity of claims asserting its efficacy against other cancer forms.

The controversy erupted after Dr. Patrick Soon-Shiong, the executive chairman and Chief Scientific and Medical Officer, made claims during a direct-to-consumer podcast that Anktiva could not only treat bladder cancer but also be effective against all forms of cancer. This declaration was flagged by the FDA, stating that such claims were misleading and lacked sufficient substantiation.

The FDA’s Warning Letter

On March 24, 2026, news broke that the FDA had sent a warning letter to ImmunityBio, escalating concerns regarding promotional materials, including a series of advertisements and the podcast featuring Soon-Shiong. The FDA highlighted that the adverts misleadingly suggested that Anktiva could cure and even prevent all forms of cancer, ultimately endangering public health with its unfounded assertions.

Specifically, the FDA stated, “the promotional materials create the misleading impression that Anktiva can cure and even prevent all cancer,” a claim that remains unsupported by existing data. They also expressed concern over the lack of material information about Anktiva’s approved indications, warning that such pervasive misleading efficacy claims pose significant risks from a public health perspective.

Legal Implications and Investor Actions

The combination of the FDA's warning and the plummeting stock price has prompted national shareholder rights firm Hagens Berman to initiate an investigation into ImmunityBio for potential violations of federal securities laws. The firm aims to represent investors who suffered significant losses during the class period from January 19, 2026, to March 24, 2026.

Hagens Berman’s partner Reed Kathrein stated, “We’re investigating claims that ImmunityBio intentionally misled investors about Anktiva’s efficacy and indications.” The firm encourages any investors who have incurred losses or have knowledge that may assist the investigation to come forward.

With the deadline for lead plaintiffs set for May 26, 2026, many shareholders are becoming increasingly anxious about their investments as the validity of ImmunityBio's marketing claims faces judicial scrutiny.

Conclusion

ImmunityBio’s current legal challenges reflect a broader issue within the biotechnology sector regarding the responsibilities of companies in accurately portraying the efficacy and safety of their products. As the outcome of the lawsuit looms, investors and the public await further developments in this pivotal case, which may leave lasting implications on both ImmunityBio and the wider biopharmaceutical industry. Investors in ImmunityBio are advised to stay informed about ongoing legal proceedings and developments from Hagens Berman regarding this significant case.

To get the latest updates on the situation, visit Hagens Berman’s dedicated case page or consider contacting them if you are a whistleblower with non-public information regarding ImmunityBio’s practices.