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Class Action Alert: ImmunityBio and Allegations of Fraudulence

ImmunityBio, Inc. (NASDAQ: IBRX) has recently found itself in troubled waters as Levi & Korsinsky, LLP calls for investors impacted by the company’s allegedly misleading drug efficacy claims to step forward and potentially lead a class action lawsuit. This follows significant losses experienced by investors when IBRX shares dropped sharply after the release of a FDA Warning Letter.

What Happened?

Between January 19, 2026, and March 24, 2026, investors who purchased ImmunityBio securities may find themselves eligible to recover damages related to what some are now calling a significant scandal. The beginning of this tumultuous period can be traced back to a podcast appearance by ImmunityBio’s Executive Chairman, where grandiose claims were made about the company’s leading biologic product, ANKTIVA. The podcast aired claims that ANKTIVA could treat “all cancers,” a suggestion that potentially misrepresented the drug’s true FDA-approved application.

In the podcast, it was stated that ANKTIVA acted as a “cancer vaccine” that could be administered via a simple injection. However, the reality is more sobering: ANKTIVA was only approved for a specific type of bladder cancer that accounted for about 4.2% of new cancer cases that year. This misinformation is cited as a turning point, where investors bought stock under falsely inflated prices, unaware that the claims made in the podcast violated federal drug promotion regulations.

The Fallout

On March 13, 2026, the FDA's Office of Prescription Drug Promotion issued a warning to ImmunityBio’s CEO, labeling the podcast and associated promotional materials as “false or misleading.” This shocking accusation drew immediate public attention and swiftly impacted the stock market. When the news broke on March 24, 2026, IBRX shares plummeted by 21%, corresponding to a loss of $1.98 per share, closing at $7.42 after the scandal hit the media and garnered notice from investors. The subsequent removal of the podcast from the company’s website did little to assuage concerns.

Investors who suffered losses during this timeframe are encouraged to gather their brokerage records, including purchase dates and quantities of shares, for potential compensation. The deadline for class action involvement is looming, as investors must act by May 26, 2026, to be considered as lead plaintiffs or class members.

Specific Concerns Raised

Joseph E. Levi, a prominent figure from Levi & Korsinsky, noted, “Timely disclosure of material developments is fundamental to fair and efficient markets,” echoing the sentiment that investors should have been alerted to these regulatory risks much sooner.

FAQs About the Case

• - When did ImmunityBio allegedly mislead investors? The misleading claims span from January 19, 2026, when the podcast was aired, until March 24, 2026, when the FDA Warning Letter brought the situation to light.
• - How much did IBRX stock drop? Following the revelation of the FDA Warning Letter, shares fell approximately 21%.
• - What steps should investors take now? It is crucial for affected investors to contact Levi & Korsinsky for an evaluation, as participation does not incur immediate costs.
• - What is a lead plaintiff? This role is vital as it represents the entire class in the lawsuit, typically taken by the investor with the highest losses.

This situation serves as a stark reminder of the fine line between aggressive profit claims and the responsibility companies hold to their investors regarding transparency and truthfulness in communications. Those who believe they have been wronged are encouraged to reach out and explore their options for recovery.

In an environment where corporate communications can greatly influence public perception and stock performance, the ongoing developments surrounding ImmunityBio will be closely watched, both by impacted investors and regulatory bodies.