SAN DIEGO, March 14, 2016 /PRNewswire/ -- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating potential violations of the federal securities laws by NantKwest, Inc. (NASDAQ: NK) and certain of its officers. NantKwest, a biotechnology company, develops immunotherapeutic agents for various clinical conditions.
Specifically, Johnson & Weaver's investigation seeks to determine whether certain statements regarding the Company's business and prospects were false and misleading when made.
On July 28, 2015, NantKwest's stock traded as high as $38.48, the same day the Company sold 8.3 million shares of stock in its initial public stock offering (the "IPO"), raising $207.2 million in new capital. However, since the IPO, NantKwest's stock has imploded, falling from its high of $38.48 on July 28, 2015 to close at $8.37 on March 14, 2016.
On March 11, 2016, NantKwest announced that its interim financial statements for the quarters ended June 30, 2015 and September 30, 2015 should no longer be relied upon due to the errors in the financial statements, mainly attributable to certain stock-based awards to NantKwest's Chief Executive Officer and Executive Chairman and build-to-suit lease accounting related to one of its research and development and Good Manufacturing Practices facilities. NantKwest management has announced that these errors were the result of a material weakness in its internal controls of financial reporting. NantKwest further acknowledged that "the material weakness, as disclosed in previous filings, is a result of inadequate staffing levels, resulting in insufficient time spent on review and approval of certain information used to prepare our financial statements and the maintenance of effective controls to adequately monitor and review significant transactions for financial statement completeness and accuracy. Management is continuing to assess the effect of the restatement on the Company's internal control over financial reporting and disclosure controls and procedures and expects to report its conclusions regarding these matters in the Company's Annual Report on Form 10-K for the year ended December 31, 2015".
If you are a NantKwest shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact Jim Baker (firstname.lastname@example.org) at 619-814-4471. If you email, please include your phone number.
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
|SOURCE Johnson & Weaver, LLP|
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