A number of law firms are working to bring up class action lawsuits against Nantkwest Inc. (NASDAQ: NK) and certain of its officers. But those legal battles threaten to distract the management from executing on the core issues as recently outlined at the Bank of America Corp (NYSE: BAC) 2016 Healthcare conference.
What about the lawsuits
Goldberg Law PC recently issued a press release encouraging shareholders in Nantkwest Inc. (NASDAQ: NK) who acquired shares of the company at certain dates and suffered losses to join its class action. The Law Offices of Howard G. Smith, another law firm interested in securities matters, also issued a press release calling on NantKwest to join its class action suit against the company.
Both firms are citing Nantkwest Inc. (NASDAQ: NK) and its CEO, Patrick Soon-Shiong, as defendants.
What’s the matter with Nantkwest Inc. (NASDAQ: NK)?
The firms are seeking to bring up class action lawsuits against NantKwest and its CEO over claims that the company published false financial statements that ended up causing losses for certain investors. Among other things, the firms say that NantKwest didn’t disclose certain material adverse facts that could have helped the affected investors avoid the losses.
The class actions, although yet to be certified, seek to fight for the interest of investors who acquired shares of NantKwest between July 28, 2015 and March 11, 2016.
Executing on the core matters
The issues of class actions come at a time when Nantkwest Inc. (NASDAQ: NK) is gearing up to accelerate its various drug development programs as the management recently discussed at the Bank of America conference. According the company’s officials, the focus in the next six to 12 months will be on translating the various drug development programs into human clinical studies.
Nantkwest Inc. (NASDAQ: NK) also updated that the proceeds from its IPO have helped it to expand manufacturing capacity and is now ready to put the infrastructure into use. The company is engaged in developing treatments for cancer and other conditions.