Patrick Soon-Shiong sued over capital investment in biotech firm
Precision Biologics has filed a lawsuit against biotech mogul Patrick Soon-Shiong, accusing him and the company’s controlling board members of wrongfully diverting capital.
Company stockholder James A. Feldman filed a custodian request with Delaware’s Chancery Court last week, and in the document Feldman accuses Soon-Shiong, NantCell and two other directors of breaching contract and fiduciary duty to Precision Biologics.
The company -- which focuses on developing therapeutic and diagnostic products for the early detection and treatment of cancer -- was founded in 2012. Soon-Shiong’s NantCell purchased a $50 million controlling stake in the company in 2015.
Feldman alleges that soon after the buy-in, NantCell immediately took $47 million of the initial investment from a company-controlled account.
The lawsuit also accuses controlling stockholders of “wrongfully taking the vast majority of the company's capital for their own use."
Feldman is seeking the “immediate return of funds removed from company and to enjoin defendants from interfering with company's ability to utilize such funds or to take any acts out of ordinary course of company's business."
This is just the latest lawsuit against Soon-Shiong and his companies. In June, D.C. attorneys Boyden Gray and Adam Waldman alleged the biotech mogul is seeking to acquire Altor Bioscience through a sweetheart deal.
Other lawsuits were filed in the Spring, after three reports -- two from Stat and one from Politico -- questioned Soon-Shiong’s potential conflicts of interest, expenditures of his nonprofit business dealings and questionable donations.
Paul Ryan recently appointed Soon-Shiong to the U.S. Department of Health and Human Services Health IT Advisory Committee, despite these controversies. Soon-Shiong’s NantWorks acquired controlling stake in Verity Healthcare, a health system made up of six California Hospitals